Idle Cash Could Leave Over $130,000 on the Table by Retirement, Finds PensionBee

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PensionBee (OTC:PBNYF) released new analysis on the long-term cost of holding excess cash in HYSAs and CDs instead of tax-advantaged retirement accounts.

Over 30 years, a retirement account turns $50,000 into nearly $300,000 versus just over $162,000 in a HYSA, a gap of about $131,000. PensionBee highlights that U.S. households hold roughly $14 trillion in cash-like assets and that $1.6 trillion in CDs will mature in 2026, often auto-renewing at lower rates with only 7–10 days to act.

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New PensionBee analysis reveals the long-term cost of keeping excess cash "safe"

NEW YORK, May 19, 2026 (GLOBE NEWSWIRE) -- PensionBee, a leading online retirement provider, has published a new analysis of the long-term cost of holding excess cash in high-yield savings accounts (HYSAs) and Certificates of Deposit (CDs) instead of tax-advantaged retirement accounts.

The comparison finds that this common money move, while well-intentioned in the short term, can grow costly the longer it persists. Over 30 years, PensionBee found a gap of approximately $131,000.

According to Federal Reserve data, American households are currently holding approximately $14 trillion in time deposits, short-term investments, and money market fund shares — near a record high.

"The problem isn't saving in a bank account. It’s stockpiling without asking what the money is actually there for," said Romi Savova, Founder and CEO of PensionBee. “Cash has a job. Beyond the emergency fund, that job is growth."

PensionBee’s analysis finds that over 30 years, the retirement account turns $50,000 into nearly $300,000 — approximately 6x the original deposit. The HYSA, by comparison, grows to just over $162,000.

"The instinct to protect savings is rational," added Savova. "It becomes costly when it's applied to the wrong time horizon."

With $1.6 trillion in CDs set to mature at traditional financial institutions during 2026, PensionBee identifies this year as a critical inflection point for savers who risk auto-renewing at significantly lower rates.

Many CDs are set to auto-renew, meaning a 4.5% CD could automatically roll over at standard rates which have no legal minimum. While current 1-year CD averages hover around 2–3%, CDs have historically paid as little as 0.1%. When CDs mature, account holders may have as little as 7–10 days to act before they are locked in at prevailing rates.

PensionBee is urging savers to treat these maturities as a trigger to move excess cash into tax-advantaged retirement accounts rather than letting it drift into low-yield holding patterns. Holding cash for decades erodes purchasing power in real terms, even as the nominal balance grows.

The full analysis is available here: Why Your High-Yield Savings Account May Be Riskier Than You Think.

About PensionBee

PensionBee (LON:PBEE; OTCQX:PBNYF) is a leading retirement savings provider, helping people easily consolidate, manage, and take control of their retirement savings. The company manages over $10 billion in assets and serves 315,000 customers globally, with a focus on simplicity, transparency, and accessibility. PensionBee offers Traditional, Roth, SEP, and Safe Harbor IRAs with ETF-backed portfolios that include SPY and MDY from State Street Investment Management, one of the world’s largest asset managers. PensionBee is publicly traded on the London Stock Exchange (PBEE) with U.S. shares available on OTCQX (PBNYF).

Notes

The information provided in this announcement, including any projections for investment returns and future performance, is for informational and educational purposes only and should not be considered investment advice. Past performance is not indicative of future results. All investments carry risk, including the potential loss of principal. PensionBee is not liable for any losses or damages arising from the use of this information. Projections and forecasts are based on assumptions and current market conditions, which are subject to change.

Media Contact:
Adela McVicar
SR PR Manager, PensionBee
adela.mcvicar@pensionbee.com

^{PensionBee Inc. is registered with the Securities and Exchange Commission as an investment adviser. We do not provide in-person advice. PensionBee Inc (Delaware Registration Number SR20241105406 ) is located on 85 Broad Street, New York, New York, 10004.}

FAQ

What did PensionBee (PBNYF) find about idle cash by retirement in its May 19, 2026 analysis?

PensionBee found idle cash can miss out on about $131,000 over 30 years. According to PensionBee, $50,000 in a retirement account grows to nearly $300,000 versus just over $162,000 in a high-yield savings account.

How does PensionBee say $50,000 can grow in a retirement account versus a HYSA?

PensionBee estimates $50,000 can reach nearly $300,000 in a retirement account over 30 years. According to PensionBee, the same $50,000 in a HYSA grows to just over $162,000, creating a roughly $131,000 difference.

Why does PensionBee warn HYSA and CD savers in 2026 about auto-renewals?

PensionBee warns that $1.6 trillion in CDs will mature in 2026 and may auto-renew at lower rates. According to PensionBee, savers often have only 7–10 days to act before being locked into prevailing CD rates.

How much cash do American households hold in deposits and money market funds, according to PensionBee?

American households hold about $14 trillion in time deposits, short-term investments, and money market fund shares. According to PensionBee, this near-record level of idle cash highlights the importance of aligning savings with long-term retirement goals.

What action does PensionBee suggest for excess cash when CDs mature in 2026?

PensionBee suggests using CD maturities as a trigger to move excess cash into tax-advantaged retirement accounts. According to PensionBee, this can help avoid decades in low-yield products and reduce the long-term growth gap versus retirement investing.

How does PensionBee describe the risk of holding cash for decades in HYSAs and CDs?

PensionBee says holding cash for decades can erode purchasing power in real terms. According to PensionBee, even if balances rise nominally, low-yield HYSAs and CDs may significantly underperform tax-advantaged retirement accounts over 30 years.