How To Have Cash Ready To Invest

February 05, 2026

Hey, It’s Zach here…

When the market sells off, you need one thing.

Cash.

Smart investors call this "dry powder." It puts you in a position of strength when the market presents opportunities.

But if you leave that money in a regular savings or checking account, you have a massive leak.

It earns basically nothing while it sits there. And it is costing you money every single day.

Here is the math.

Most big banks pay you next to nothing. It’s usually around 0.01%.

Meanwhile, inflation eats away at your buying power.

I ran the numbers on a $10,000 cash balance. The difference is shocking.

  • Regular Bank: You earn $1 per year.

  • High-Yield Savings: You earn ~$450 per year.

That is a $449 difference.

You take zero extra risk. You do almost zero work. But you get paid 450 times more interest.

Think about it this way: That is enough free money to buy an extra share of Microsoft every single year. Just for moving your money to a better home.

How to Fix the Leak

You need to view a High-Yield Savings Account (HYSA) as a holding tank.

It allows your "dry powder" to earn a risk-free return while you wait for the market to dip.

I use Bankrate to find the best deals.

They are an unbiased source. They scan the market in real-time. They show you the top FDIC-insured offers side-by-side.

Here is how to set it up in 5 minutes:

  1. Click here to view the Rate Table.

  2. Look for the highest yield.

  3. Click "Open Account" and link your bank.

These accounts are FDIC-insured. You get the same safety as the big banks. You just get 10 to 20 times the yield.

Don't let your cash shrink while it sits on the sidelines.

Make sure your cash works as hard as your stocks.

I know on days like today, I wish I focused more on building up a cash position. So many opportunities in the software stock sell off.

I’ll talk about that more on Monday’s newsletter.

Happy investing!

– Zach 
Founder, Dividend Data

P.S. I’m often asked where I park my cash while waiting for a dip. This is it. It’s the easiest "dividend" you can add to your portfolio today. See the current rates here.

Note: Panel Inc. is an official partner of Bankrate. Rates vary, interest is taxable, and HYSAs are not a substitute for long-term investing.