Cash Still Offers Banging Returns, Some as High as 5.00%
Secure Your Money and Maximize Earnings: Top High-Interest Account Options Today
Whether you're flushing cash under the mattress or keeping it in a bedroom safe, it's crucial to know how hard that dough's working! With economic chaos ruling the roost, a cash reserve has never felt so essential. From the shifting sands of President Trump's tariff policies to the Fed's gentle dance with interest rate cuts, choosing the right cash strategy can make a real financial difference.
Luckily for us savers, the current market keeps dishing out great deals, thanks to the Fed's supportive interest rate policies. And if things don't change soon, these enticing returns could stick around for a while. According to the CME Group's FedWatch Tool, there's a 3 out of 4 chance that the Fed won't issue a rate cut until September 17 (so hold your horses).
Banks, credit unions, and brokerages usually track the federal funds rate like hounds on a scent. You can see it in the rates offered on savings, money market, and CD accounts—they tend to rise and fall in tandem with the big dog. So, with rates poised to stay high, those sweet savings are here to stay.
Top Cash Investment Options
Investing your cash doesn't mean you've got to play the stock market like a wild bull—no siree! In this world of laymen (and ladies), here are three simple categories for low-risk returns that still put a spring in your step:
- Bank and Credit Union Products: Savings accounts, money market accounts, and certificates of deposit (CDs)
- Brokerage and Robo-Advisor Products: Money market funds and cash management accounts
- U.S. Treasury Products: T-bills, notes, bonds, and inflation-protected I bonds
Mix and match these options based on your financial goals and timeline. Your best move? Know what each option's delivering right now. Below's a breakdown of the top rates in each category, as of the current market close:
Bank and Credit Union Rates
These figures represent the top-notch annual percentage yields (APYs) earned by federally insured banks and credit unions, based on daily analysis of more than 200 institutions offering nationwide products:
Note: Savings and money market account rates can change at the drop of a hat. CD rates, however, are fixed and guaranteed for the entire term of the certificate.
Brokerage and Robo-Advisor Cash Rates
The yield on money market funds takes a tumble every day, while rates on cash management accounts remain more stable but can vanish without a trace.
U.S. Treasury Rates
Treasury securities pay interest through maturity and can be picked up on TreasuryDirect or purchased through a bank or brokerage. I bonds, however, must be bought from TreasuryDirect and can be held for up to 30 years, with rates adjusted every six months.
Compare All Those Cash Options by Rate
Want a glimpse of all the cash vehicles mentioned above, sorted by today's biggest guns? Here you go:
Deciding Which Cash Option Suits Your Goals
Bank and Credit Union Products
Savings Accounts
Boring, but necessary: A bank or credit union savings account sits pretty as the simplest spot for your greenbacks. But don't assume your everyday bank pays competitive rates; some banks pay practically zilch.
Our daily ranking of the best high-yield savings accounts offer more than 20 options that trump 4.30% to 5.00% APY. Keep in mind, however, that savings account rates are subject to change at any moment.
Money Market Accounts
If paper check-writing's your thing, dip into a money market account. But, if you can manage without it, pick whichever account type provides a better return. The current top money market account rate is a snappy 4.37%. Y'all know—change is the only constant!
Certificates of Deposit
A CD's a bank or credit union product that promises a predictable return over a set period, with rates fixed for the duration of the term. But breaking the commitment can be a nasty surprise with penalty fees. Our daily ranking of the best nationwide CDs includes 14 options delivering at least 4.50% and a top rate of 4.60% APY.
Brokerage and Robo-Advisor Products
Money Market Funds
Unlike a money market account at a bank, money market funds are mutual funds invested in cash and offered by brokerages and robo-advisors. Their yields can vary from day to day, but they currently groove between 3.94% and 4.21%.
Cash Management Accounts
For uninvested cash held at a brokerage or robo-advisor, you can have it "swept" into a cash management account where it'll make a terrific return. Unlike money market funds, cash management account rates might adjust at any given moment. Several popular brokers are currently paying 3.83% to 4.00% APY on their cash accounts.
U.S. Treasury Products
Treasury Bills, Notes, and Bonds
The U.S. Treasury offers a smorgasbord of short- and long-term bond instruments, ranging from 4 to 52 weeks for Treasury bills, 2 to 5 years for Treasury notes, and 20 or 30 years for Treasury bonds. Today's rates for these products buzz between 4.19% and 4.85%.
You can buy T-bills, notes, and bonds through TreasuryDirect (the feds' free online platform for buying U.S. Treasury securities) or trade them on the secondary market with banks and brokerages. Selling a Treasury product allows you to exit before it reaches maturity.
I Bonds
U.S. Treasury I bonds have a rate that changes every six months to keep pace with inflation trends. These bonds can be held for up to 30 years, and their rate changes along with them.
On May 1st, the rate on new bonds purchased between May 1st and October 31st, 2025, increased to 3.98% from 3.11% for bonds issued during the previous six months. Existing I bond holders will also see their next six-month rate rise by nearly a full percentage point. For the ins and outs of this recent rate change, check out our new rate change story with rate tables for various bond dates.
- In the volatile world of finance, exploring alternative investment opportunities can be beneficial, such as the trading of tokens in Initial Coin Offerings (ICOs) within the burgeoning token industry.
- As one seeks to diversify their personal-finance portfolio, it's prudent to consider liquidity options provided by banking-and-insurance institutions, including high-yield savings accounts, money market accounts, and certificates of deposit (CDs).
- For those looking to combine the safety of traditional banking with the ease of modern technology, brokerages and robo-advisors offer products like money market funds and cash management accounts.
- In addition to traditional banking products, U.S. Treasury offerings, such as T-bills, notes, bonds, and inflation-protected I bonds, may also provide competitive returns and serve as a hedge against economic instability.
