A collective $472 billion was pulled from the American banking system in the first quarter of 2023, the Federal Deposit Insurance Corporation announced May 31 — the biggest amount withdrawn from U.S. banks since the FDIC started collecting such data in 1984.

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The latest news from the FDIC offers a glimpse of the banking sector’s health since the failures of Silicon Valley Bank and Signature Bank earlier this year triggered industry turmoil, which saw the seizure of First Republic Bank in May.

FDIC chairman Martin Gruenberg noted the sector continues to face risks stemming from inflation, rising rates and economic pressure, particularly in areas like commercial real estate.

If you’re keen on taking your money out of banks, there are plenty of alternative places to park your excess cash. Here are the top three.

1. Real estate

There are certain risks in the real estate sector. The national office vacancy rate has hit 16.7%, according to CommercialEdge’s National Office Report for May 2023. Redfin reports that new home sale listings hit their lowest level of any early June on record.

Some less obvious real estate options, however, may be safer for investors. For example, JLL, a global real estate services firm, predicts the current boom in artificial intelligence technology will increase the demand for data centers.

Funds focused on such niche segments of the real estate market could be an attractive destination for your cash in 2023.

Read more: 3 big mistakes people make with cash back credit cards that cost them every time they swipe

Gold

Gold tends to perform well during waves of inflation. This solid asset is widely considered to be a safe haven, which is why even central bankers accumulate gold during times of economic uncertainty. The People’s Bank of China, for instance, has been boosting its gold reserves for months, per Bloomberg.

Gold’s position as a reserve asset makes it a safe place to park cash. Investors worried about inflation or rising interest rates may want to consider adding some exposure to the precious metal.

Bond exchange-traded funds (ETFs)

Rapidly rising interest rates are bad for borrowers, but excellent for lenders. Investors can now earn about 3.7% interest on a 10-year U.S. treasury bill. In other words, the U.S. government is offering a high-yield with effectively no risk.

However, if you have an appetite for some risk, corporate bond yields are higher. The iShares 1-5 Year Investment Grade Corporate Bond ETF offers a 30-day SEC yield of around 5.28%. Investors looking to preserve their purchasing power could add some cash to similar bond funds.

You could also look at high-yield corporate bonds. These bonds have a higher degree of risk, but offer better returns in exchange. The iShares iBoxx $ High Yield Corporate Bond ETF, for example, offers a 30-day SEC yield of around 7.99%, which is significantly higher than the rate of inflation right now.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.