The APY on my high-yield savings account went down - where should I invest instead?

Across the U.S., millions of people have been receiving apology emails from their banks, as high-yield savings accounts (HYSA) with APYs of 5% or higher are becoming a thing of the past. This is due to the Federal Reserve reducing benchmark interest rates, causing financial institutions to lower the rates they offer on savings and cash accounts. With interest rates and account payouts continuing to decline, investors are on the hunt for new ways to grow their money.

A Shift towards Physical Assets: Fine Art as an Investment

The world of investment is rapidly evolving, and one of the most compelling options is fine art. According to a Deloitte estimate, the overall art and collectibles wealth held by ultra-high-net-worth individuals across the globe could hit nearly $2.9 trillion by 2026. Moreover, UBS recently surveyed high-net-worth investors and found that 85% of them believe that fine art, a historically uncorrelated market, is an useful tool for diversifying their portfolios and a relatively safe investment during times of economic volatility compared to other traditional assets like stocks.

Why Fine Art as an Investment?

For many, the idea of investing in fine art may seem unconventional. However, the numbers speak for themselves. Contemporary art prices have outpaced the SP 500 by 43% from 1995 to 2024. With near-zero correlation to stocks, according to Citigroup, prices have risen by an average of 20% annually during periods of high inflation as measured by the MW All Art Index.

Accessible Art Investments: Masterworks

If you're interested in entering the art market but are concerned about the associated costs and access, consider Masterworks. Their platform has enabled 65,000 everyday investors to participate in multimillion-dollar art investments from world-renowned artists like Banksy, Basquiat, and Picasso. Masterworks handles every step of the process, from acquiring, authenticating, storing, and even selling the artwork.

Investing with Masterworks

When Masterworks sells an artwork you've invested in, you receive a return from any net proceeds. Previous annualized net returns have been 17.6%, 17.8%, and 21.5%, among assets held for one year, not including unsold. With such promising returns, it's easy to see why this is an exciting investment opportunity. To explore all that Masterworks has to offer, follow this exclusive link for a free membership offer.

Important Disclosures

Masterworks is providing this communication as an agent for its issuer entities, not Masterworks Advisers. This content does not contain legal, tax, or investment advice and is not a personalized recommendation. Investing involves risk. Past performance is not indicative of future returns. Please review the important disclosures before making any investment decisions.

IRR (Internal Rate of Return) refers to the annualized internal rate of return net of all fees and expenses, calculated from the offering closing date to the date the sale is consummated. IRR may not be indicative of Masterworks paintings not yet sold, and past performance is not indicative of future results. For additional information regarding the calculation of IRR for a particular investment in an artwork that has been sold, a reconciliation will be filed as an exhibit to Form 1-U and will be available on the SEC's website.

Art sales price data is comparative only. Each painting is unique, and historical data is not a direct proxy for any specific painting or investment. Data represents whole art, not an investment into our offerings which includes fees and expenses. Past sales are not indicative of future results.

Contemporary Art Data is based on the repeat-sales index of historical post-war contemporary art market prices and SP 500 annualized returns including dividends reinvested from 1995 to 2024, developed by Masterworks. There are significant limitations to comparative asset class data. Indices are unmanaged, and a Masterworks investor cannot invest directly in an index.