Key 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 of deposit (CDs), where today’s top rates range from 4.40% to 5.00% APY.
- Brokerages and robo-advisors, meanwhile, offer money market funds and cash management accounts, with current rates up to 4.24%.
- You could also choose U.S. Treasurys, ranging from 1-month T-bills to 30-year Treasury notes. Rates range from 4.00% to 4.65% right now.
- Our tables below lay out today’s returns on all these cash instruments, letting you choose what makes the most sense for your money.
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Your Safe, Easy Options for a Top Cash Return
To earn a solid interest rate on savings with virtually no risk, your options for safe cash investment come in three main flavors:
- 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, in addition to I bonds
You can choose just one of these, or mix and match products for different buckets of funds or timelines. 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 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.
Today’s Best Rates on Cash
This week saw very minor ups and downs on returns from different cash instruments. The leading high-yield savings account, money market account, and all CD terms but one held steady at their previous top rates. The best 4-year CD return, however, inched up by 5 basis points to 4.40% APY. Meanwhile, the top deposit rate in the nation continues to be Mountain America Credit Union’s 5.00% APY on an 18-month CD.
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 on brokerage cash management accounts meanwhile held their ground, ranging from 3.83% to 4.00%.
For Treasurys, rates showed little to no movement across durations. The largest change this week was an increase of 4 basis points for 1-year T bills (to 4.09%), while 20-year Treasury bonds continue to offer the highest Treasury return 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. Thus, national averages are always 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—that 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 options paying 4.35% to 4.60% APY. Note, however, that savings account rates can change at any time.
Money Market Accounts
A money market account is 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. The top money market account rate is currently 4.50% APY. 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 that promises a guaranteed return for a set period of time. Generally ranging from 3 months to 5 years, CDs offer a predictable return with a rate that cannot be changed for the duration of the term.
But beware that it’s a commitment with teeth: If you cash in before maturity, your earnings will be dinged with an early withdrawal penalty. Our daily ranking of the best nationwide CDs currently includes options paying up to 5.00% 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 brokerage and robo-advisor firms. Their yields can fluctuate daily but currently range from 3.98% to 4.24% at the three biggest brokerages.
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 return. Unlike money market funds, cash management accounts offer a specific interest rate that the brokerage or robo-advisor can adjust whenever it likes. Currently, several popular brokers are 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 wide array of short- and long-term bond instruments. Those with the shortest duration are Treasury bills, which range from 4 weeks to 52 weeks, while Treasury notes have a maturity of 2 to 5 years. The longest-term option is a Treasury bond, which has a 20- to 30-year maturity. Today’s rates on the various Treasury products range from 4.00% to 4.65%.
You can buy T-bills, notes, and bonds directly from TreasuryDirect or 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—the U.S. Treasury’s online platform for buying federal government securities—has no fees.
You can also buy Treasury ETFs, which trade on the market like a stock. Treasury ETFs have advantages and limitations, which you can read about here.
I Bonds
U.S. Treasury I bonds have a rate that’s adjusted 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.
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