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Takeaways
- For your cash savings, plenty of options pay better than 4.00% right now—with one attractive choice even offering 5.00%.
- Banks and credit-unions offer high yield savings accounts, money-market accounts, and certificates (CDs) with rates ranging from 4.40% APY to 5.00%.
- Brokerages and robot advisors offer money-market funds and cash-management accounts with rates as high as 4.24%.
- You can also choose Treasurys in the US, from 1-month Tbills to 30-year Treasury bills. Right now, rates range from 4.00% up to 4.65%.
- Our tables below present the current returns for all these cash assets, so you can choose what is most beneficial for your money.
The full article can be found below these offers.
Your Easy and Safe Options for a Top Cash Return
Three main types of safe cash investments are available to earn a high interest rate with little risk:
- Products of the Bank and Credit UnionSavings accounts, money-market accounts, and certificates (CDs).
- Brokerage and roboadvisory productsMoney market funds, cash management accounts
- Treasury productsT-bills (T-bills), notes and bonds are available in addition to the I bonds
You can pick one or combine products to meet different timelines or budgets. In any case, you'll want to understand what each product pays. Below, we lay out today's top rates in every category and indicate the change from a week ago.
Need more information on the pros and cons? Below the table, we provide links to detailed information and descriptions of each.
Today's Best Rates on Cash
This week, there were only minor fluctuations in the returns on different cash instruments. All CD terms except one, including the top-rated high-yielding savings account and money market account, remained at their previous highest rates. The best 4-year CD returned, however increased by 5 basis point to 4.40%. Mountain America Credit Union, with its 18-month CD yielding 5.00% annual percentage yield (APY), continues to have the highest deposit rates in the nation.
Among money market funds at the three major brokerages, the yields there slipped—but only by 2 to 3 basis points, with a top rate of 4.24% offered by Vanguard. Rates for brokerage cash management accounts, however, were stable and ranged from 3.83% to 40%.
Treasury rates were largely unchanged across all durations. The biggest change in rates this week was the increase of 4 basis-points for 1-year bills (to 4.09%), while 20-year Treasury bond yields remain at 4.65%.
In any case, returns in the 4% range are excellent, and the various options below are likely to be a good fit for almost anyone's cash savings needs and timeline.
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 very different from the national average, comprising all institutions offering a CD with that term—including many large banks that pay a pittance in interest. National averages are therefore always low while our top rates are often 5, 10 or even 15-times higher.
Understanding Your 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—that lets you add and withdraw money as you please. Do not assume that your primary banking institution pays a competitive rate. Some banks offer interest rates that are almost zero.
We make it easy to find a high-yielding account. Our daily ranking shows 15 high-yielding accounts that pay between 4.35% and 4.60% annual percentage yield. Please be aware that rates on savings accounts may change at any time.
Money Market Accounts
A money market is a savings account with the option to write 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 4.50% APY. Be aware that money-market rates are volatile and can be reduced without warning.
Certificates of deposit
A certificate of deposit is a bank product or credit union product that offers a fixed interest rate and a guaranteed return. CDs, which are usually between 3 months and 5 years long, offer a predictable rate of return that is not subject to change for the duration.
Beware, this is a commitment that has teeth. If you withdraw your money before the maturity date, you will be charged an early withdrawal fee. Our daily ranking includes CDs that pay up 5.00% 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 fluctuate daily, but range from 3.98% – 4.24% for 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 a profit. Cash management accounts are different from money market funds because they offer a set interest rate which the brokerage can change at any time. Currently, a number of popular brokers offer 3.83% – 4.00% APY for their cash accounts.
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 range of 4 weeks to 52, while Treasury Notes have a maturity between 2 and 5 year. A Treasury bond has a maturity of 20 to 30 years. Rates on Treasury products range between 4.00% and 4.65%.
TreasuryDirect offers T-bills as well as notes and bonds that you can purchase directly or sell on the secondary markets at banks and brokerages. You can sell a Treasury product to get out of the bond before it matures. 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 also purchase Treasury ETFs that trade on the stock market just like stocks. Treasury ETFs come with both advantages and disadvantages, which you can learn about here.
I Bonds
The rate of U.S. Treasury Bonds I is adjusted every six-months to match 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.
How to Find the Best CD Rates and Savings
Investopedia ranks the highest-paying savings and CD accounts every day. It tracks rate data from more than 200 credit unions and banks across the country. For an institution to qualify for our lists it must be federally-insured (FDIC or NCUA for credit Unions) and the account must have a minimum initial deposit of no more than $25,000. The maximum deposit amount cannot be less than $5,000.
To qualify as a national bank, the bank must be located in at least forty 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). Read our methodology to learn more about how we select the best rates.
Article Sources Investopedia asks writers to use primary resources to support their writing. These include whitepapers, government data, original reports, and interviews with experts in the industry. We also use original research from other reputable publications when appropriate. Our website contains more information about the standards that we use to produce accurate, unbiased content. Editorial Policy
Federal Deposit Insurance Corporation "National Rates and Rate Caps."
TreasuryDirect. "About Treasury Marketable Securities."
U.S. Treasury. "I Bonds."
