Key Takeaways
- For cash you want to keep in savings, plenty of options pay above 4% right now, with one stellar choice even offering 5.00%.
- Banks and credit unions offer high-yield savings accounts, money market accounts, and certificates of deposit (CDs). Today’s top rates on these products range from 4.35% to 5.00% APY.
- Brokerages and robo-advisors, meanwhile, offer money market funds and cash management accounts, with current rates up to 4.25%.
- You could also choose U.S. Treasurys, ranging from 1-month T-bills to 30-year Treasury notes with rates of 3.99% to 4.55%.
- 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
When it comes to earning a solid interest rate on savings, your options come in three main 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, in addition to I bonds
You can choose just one of these, or mix and match different products for different buckets of funds. In any case, you’ll want to understand what each product pays. We’ve laid out today’s top rates in every category and indicated the changes 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
Though many 4%-plus options are available right now, the highest return you can earn on your cash today is 5.00%, available as an 18-month certificate of deposit (CD) from Mountain America Credit Union. Though CDs require you to lock in your funds (generally charging an early withdrawal penalty if you cash out before maturity), the upside of the commitment is that your advertised rate is also locked in for the full term. So if you were to open Mountain America’s CD next week, your 5.00% APY would be guaranteed until September 2026.
If you don’t feel comfortable committing your funds, or prefer a different timeline for your savings, returns in the 4% range are still excellent, and you can earn that from a number of choices in the tables below.
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—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 16 options paying 4.35% to 4.75% 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 4.00% to 4.25% 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 3.99% to 4.55%.
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 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.