Convenient, easy to use, and oh-so-tempting to leave a few bucks sitting in? Payment apps have become the favorite go-to for Millennials and Gen Z folks, especially in bustling cities like San Francisco. But here’s a reality check: storing your hard-earned cash in apps like Venmo or Cash App isn’t just a bad idea, it’s potentially a one-way ticket to Financial Regret City.

Let’s meet Connor Tomasko, a savvy 31-year-old software consultant from Chicago. She’s seen the horrors of using payment apps and their appeal firsthand. “Who doesn’t love the speed of sending money with just a username?” she asks. But here’s the kicker: leaving your money in these apps can lead to serious problems. Unlike your old-school bank accounts with their comforting FDIC insurance, money in payment apps may be hanging out with zero protection. Tomasko made it a point to educate herself on avoiding financial pitfalls, and now she preaches the gospel of high-yield savings accounts like they’re the holy grail of smart money management.

So why should we care about high-yield savings accounts? Simple. According to the Consumer Financial Protection Bureau (CFPB), the amount of cash sitting in payment apps reached a whopping $893 billion in 2022, projected to balloon to $1.6 trillion by 2027. With interest rates that aren’t just a distant dream, moving your funds back to an actual bank can help you earn some dough while you sleep, rather than risking it in a cash app.

It’s not like the convenience of payment apps isn’t appealing. You can send money without giving your life story to some random at the bar you met once. Connor notes that it does come handy when splitting dinner bills with that date that didn’t quite work out. “Sure, I get the appeal,” she says.

But let’s face it: leaving your cash in these apps? Well, that’s like putting your money into a black hole. Courtney Alev, a consumer advocate at Credit Karma, sums it up well: “Leaving money sitting in peer-to-peer lending accounts is basically leaving potential interest from a high-yield savings account on the table”. In plain English: why waste your cash when it could be working for you?

For those of you who can’t resist the luring glow of payment apps, remember this: funds in payment apps often don’t have the same backing as traditional banks, making them a riskier option. Unless you’re employing nifty tricks like linking your account to a Cash App debit card, your money could be playing a dangerous game of hide-and-seek.

In short, while payment apps may seem like the friendliest way to manage your money for quick transactions, think twice before parking your cash in them. Your future self will thank you, and who knows, you might even start raking in interest from a high-yield savings account. So go on, hit that transfer button, and let your money enjoy a safe trip back to the bank.