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Key Takeaways
- For cash savings you want to keep accessible, you have plenty of options right now to earn a historically high return—with some rates slightly higher this week, and others slightly lower.
- Banks and credit unions offer high-yield savings accounts, money market accounts, and certificates of deposit—currently paying as much as 5.50% for an 8-month CD.
- Brokerages and robo-advisors meanwhile offer money market funds and cash management accounts, with current rates up to 4.28%.
- You could also choose U.S. Treasury bond instruments, which range from 1-month T bills to 30-year Treasury notes, as well as inflation-adjusted I bonds. Today’s top Treasury rate is 4.91%.
- To compare current rates on all the options, see our tables below.
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The Many Places You Can Put Cash to Earn a Top Return
When it comes to socking away your money where it can earn a solid interest rate, you have lots of options, which come in three categories:
- 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, and bonds, as well as I bonds
You can go with just one, like a high-yield savings account, or you can mix and match different products for different buckets of funds. In any case, you’ll want to understand what the different product types pay, which we’ve made easy for you by laying out today’s top rates in every category. We also indicate how much each rate has changed from a week ago.
Need more information to understand the pros and cons of these different savings vehicles? Below the tables, we describe each one and provide links to more detailed information.
Note that the “top rates” quoted for savings accounts, money market accounts, and CDs are the highest nationally available rates Investopedia has identified in its daily rate research of hundreds of banks and credit unions. This is much different than the national average, which includes all institutions offering a CD with that term, including many large banks that pay a pittance in interest. Thus, national averages are always quite low, while the top rates we present are often 5, 10, or even 15 times higher.
Understanding Your Different Cash Options
Bank and Credit Union Products
Savings Accounts
The most basic option is a bank or credit union savings account—sometimes called a high-yield savings account—which lets you add and withdraw money as you please. But don’t assume your primary bank pays a competitive rate—some banks pay virtually zero interest.
Fortunately, we make shopping for a high rate easy. Our daily ranking of the best high-yield savings accounts gives you 15-plus options paying 4.40% to 4.75% APY. Note, however, that savings account rates can change at any time.
Money Market Accounts
A money market account is essentially a savings account that adds the ability to write paper checks. If this is a useful feature to you, shop our list of the best money market accounts.
If you don’t need paper check-writing, choose whichever account type—money market or savings—pays the better rate. Again, be aware that money market rates are variable so they can be lowered without warning.
Certificates of Deposit
A certificate of deposit (CD) is a bank or credit union product with a fixed interest rate, promising you a guaranteed return for a set period of time. Generally ranging between 3 months and 5 years, CDs offer a predictable return, with a rate that cannot be changed.
But beware that it’s a commitment with teeth: Your earnings will be dinged with an early withdrawal penalty if you cash in before maturity. Our daily ranking of the best nationwide CDs currently includes options paying up to 5.50%.
Brokerage and Robo-Advisor Products
Money Market Funds
Unlike a money market account at a bank, money market funds are cash-invested mutual funds offered by brokerage and robo-advisor firms. Their yields can fluctuate daily.
Cash Management Accounts
For uninvested cash held at a brokerage or robo-advisor, you can have the funds “swept” into a cash management account, where it will earn a stated return. Unlike money market funds, cash management accounts offer a specific interest rate, although the brokerage or robo-advisor can adjust that rate whenever it likes.
U.S. Treasury Products
Treasury Bills, Notes, and Bonds
The U.S. Treasury offers a wide array of short and long-term bond instruments. The shortest duration are Treasury bills, which range from 4 weeks to 52 weeks, while Treasury notes are bonds with a maturity of 2 to 5 years. The longest-term option is a Treasury bond, which has a 20- to 30-year maturity.
You can buy T bills, notes, and bonds directly from TreasuryDirect, or you can buy and sell them on the secondary market at brokerages and banks. Selling a Treasury product allows you to exit before the bond matures. However, you may pay a fee or commission for secondary market purchases and sales, while buying and redeeming at TreasuryDirect comes with no fees.
You can also buy Treasury ETFs, which trade on the market like a stock. Treasury ETFs have advantages but also limitations, which you can read about here.
I Bonds
U.S. Treasury I bonds are a type of bond with a rate that adjusts every six months to align with inflation trends. You can redeem an I bond anytime after one year, or hold it for as long as 30 years. Every six months you own the bond, your rate will change.
How We Find the Best Savings and CD Rates
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account’s minimum initial deposit must not exceed $25,000. It also cannot specify a maximum deposit amount that’s below $5,000.
Banks must be available in at least 40 states to qualify as nationally available. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.