Heloc Arbitrage Discussion

[Michael Vilasi]

Hello Everyone!

Hoping for some advice and a little insight. 

When interest rates were lower, July 2022, we locked in heloc fixed for 3 yrs at 3.25% interest only. We just purchased rental number two and I wanted some reserve cash in the bank so I pulled out some money from the heloc just to have. 

I pay 3.25% interest on my heloc until June 2025 and I currently have  5.25% interest in a high yield savings. Should I just keep it in the bank while paying off interest and make the 2% arbitrage move here or am I looking at this incorrectly? 

Would love some insight.