Best Places to park your savings as the Fed rate stays high

Takeaways

• A cash cushion could be a smart move right now, given the economic uncertainty created by President Donald Trump’s tariffs.
• Fortunately for savers, the Fed isn’t likely to cut interest rates anytime soon—meaning today’s great cash returns still have some runway.
• You can lock in your APY with CDs that pay 4.50% until late 2026.
• As of today’s close, U.S. Treasurys can pay up to 4.81%.
• The table below shows the latest returns for all of these options.

The full article can be found below these offers.

Holding Some Cash Is Smart—And Luckily Pays Quite Well Right Now

In the current climate of economic uncertainty caused by President Trump’s evolving policy on tariffs, it seems prudent to keep cash in reserve. It’s important to know how much you could earn from different cash-management strategies, whether you keep your savings in a bank or move funds away from riskier investments.

The Federal Reserve’s benchmark rate is still high, which means that the returns are also good. It is also likely that the central banks will maintain its federal funds rate for at least two more meetings. According to CME Group’s FedWatch Tool the financial markets currently price in 66% odds of the first rate cut 2025 not coming before the Fed’s rate announcement on July 30.

The federal funds rate is directly related to the interest rates that banks, credit-unions, and brokerages offer on savings. When the Fed reduces this benchmark rate, rates on savings, money-market, and CD accounts also fall.

Today's Best Rates on Cash – May 2, 2025

Safe cash investments offer three main options to secure a high interest rate with virtually no risk.

1. Bank and credit union productsSavings Accounts, Money Market accounts (MMAs), or Certificates of Deposits (CDs).
2. Brokerage and robo advisor productsMoney market funds, cash management accounts
3. Treasury ProductsIn addition to the I bonds, there are T-bills (notes), bonds and notes.

You can choose one of these products or mix them up to suit different budgets and time frames. In any case, you'll want to understand what each product pays. Below, we lay out today's top rates in every category, indicating the change from a week ago.

Bank and Credit Union rates

These rates are the highest APYs available from federally insured credit unions and banks, based on daily rate research conducted by our team of analysts.

Warning

The bank can lower the rates on savings and money-market accounts at any time. In contrast, CD rates are locked and guaranteed for the certificate's full term.

Brokerage and Robo-Advisor rates

The yields on money market funds can fluctuate daily, whereas the rates on cash-management accounts are more fixed, but they can change at any given time.

U.S. Treasury Interest Rates

Treasury securities can be purchased directly from TreasuryDirect. They can also be bought and then sold on the secondary markets via a brokerage or bank. I bonds are only available through TreasuryDirect. Rates are adjusted every six-months.

Summary Table: Cash Options sorted by Rate

Here's a different look at all of the cash vehicles above, sorted by rate. Note that these rates are the highest possible qualifying rate for each type of product.

Understanding Your Cash Options

Bank and Credit Union Products

Savings Accounts

The most basic place to stash cash is a bank or credit union savings account—sometimes called a high-yield savings account—that lets you add and withdraw money as you please. Do not assume that your main bank pays competitive rates. Some banks pay almost no interest.

We make it easy to find a high-yielding account. Our daily ranking of high-yielding savings accounts offers you nearly 20 options that pay APYs ranging from 4.35% to 5.00%. Please note that rates for savings accounts can change at any moment.

Money Market Accounts

A money market is a savings account which allows you to print checks. Shop our list of best money market account if this feature is important to you.

If you don’t need paper check-writing, choose whichever account type—money market or savings—pays the better rate. Money market account rates are currently at 4.40% APY. Remember that money market account rates are variable and can be lowered at any time.

Certificates of Deposit

Certificates of deposit (CDs) from banks or credit unions are products with a fixed-rate interest that promise a guaranteed return over a certain period of time. CDs are a bank or credit union product that offers a guaranteed return for a set period of time.

You should be aware, however, that the commitment is not without teeth. If your earnings are withdrawn before maturity you will be penalized with an early-withdrawal penalty. Our daily ranking includes CDs that pay up 4.50% APY.

Brokerage and RoboAdvisor Products

Money Market Funds

Money market funds are not money market accounts at banks, but mutual funds that are invested in cash by brokerages and robo-advisors. Their yields are subject to daily fluctuations, but currently range between 3.98% and 4.23% with the three largest brokerages.

Cash Management Accounts

You can “sweep” uninvested funds from a brokerage account or robo advisor into a Cash Management Account where they will earn interest. Cash management accounts, unlike money market funds offer a fixed interest rate that can be adjusted by the brokerage or roboadvisor at any time. Cash accounts are currently offered by several popular brokers at a rate of 3.83% to 4.0% APY.

U.S. Treasury Products

Treasury Bills, Notes and Bonds

The U.S. Treasury provides a wide range of short and long term bond instruments. Treasury bills are the shortest-term instruments, with a duration ranging from four to 52 weeks. Treasury notes, on the other hand, have a maturity ranging between two and five years. A Treasury bond is the longest-term option, with a maturity of 20 or 30 years. The rates for the different Treasury products today range from 3.82% up to 4.81%.

TreasuryDirect allows you to buy T-bills (notes), bonds, and notes directly or on the secondary market through brokerages and banks. Selling a Treasury Product allows you to exit the bond before maturity. However, you may pay a fee or commission for secondary market purchases and sales, while buying and redeeming at TreasuryDirect—the U.S. Treasury’s online platform for buying federal government securities—has no fees.

You can buy Treasury ETFs which trade like stocks on the market. Treasury ETFs come with both advantages and disadvantages, which you can learn about here.

I Bonds

U.S. Treasury bonds I have a rate which is adjusted every 6 months to align it with inflation trends. You can redeem the I bond after one year, or you can hold it for up to 30 years. The rate of the bond will change every six-months.

The rate of I bonds has just increased on May 1. It went from 3.11%, for bonds issued in the last six month to 3.98%, for new bonds purchased between May 1 and October 31, 2025. For existing I bond holders, your next six-month rate will also increase—by almost a full percentage point. See our article about the recent change in rates, which includes rate tables for various bond dates.

How we find the best CD rates and savings

Investopedia tracks daily the rates of more than 200 banks, credit unions, and savings accounts that are offered to customers across the nation. This data is used to determine the best-paying accounts. For an institution to qualify for our lists it must be federally-insured (FDIC or NCUA for banks and credit unions) and the account must have a minimum initial deposit of no more than $25,000. It cannot also specify a maximum amount of deposit that is below $5,000.

Nationally available banks must be present in at least 40 different states. Some credit unions may require you to donate $40 or more to a charity or association in order to join if you do not meet other eligibility requirements (e.g. you don’t work in a particular area or have a certain type of job). To learn more about our methodology, please read the full article.

Article Sources Investopedia asks writers to use primary resources to support their writing. White papers, original reporting and government data are all examples. We also use original research from other reputable publications when appropriate. Learn more about our standards for producing accurate, unbiased material in our Editorial Policy

1. CME Group. "CME FedWatch Tool."

2. TreasuryDirect. "About Treasury Marketable Securities."

3. U.S. Treasury. "I Bonds."