Best Places To Park Your Cash: Low-Risk, Solid Returns

Determining where to keep your cash is crucial for safety and growth. You have to consider your short-term goals, your long-term goals, and the constant threat of inflation. While it's out there making your groceries go down, inflation is also making the buying power of your stashed cash go down. As of November 2025, the year-over-year inflation rate is 2.74%. That means that if your money isn't growing by at least this amount each year to keep up, it's losing value. And if you want to see real growth, it's not enough to just keep up.

This is why you have to be smart about where you save and invest to beat inflation. Odds are, you need multiple different places to keep your money.

The best accounts for parking your cash are high-yield savings accounts, rewards checking accounts, money market accounts, certificates of deposit, short-term Treasury bills and notes, and money market funds. When comparing your options, consider the rate of return and accessibility of your money, among other factors. In this guide, we'll share the best accounts for parking cash.

High-yield savings accounts (HYSAs) are one of the best places to park cash for goals in the near future because they offer higher interest rates than traditional savings accounts, such as those you'd find at big banks like Chase or Bank of America. HYSA rates fluctuate as market rates change. But as of December 2025, you can earn an annual percentage yield (APY) upwards of 3.50%{disclaimer slug='apy-disclaimer-fbz' %}. With the current inflation rate sitting at around 3.0% year over year, you should be able to keep your money growing in a savings account with a high enough yield.

To put this into perspective, the national average rate on savings accounts, as reported by the FDIC, is 0.39% (as of 12/15/25). But you'll see a lot of standard accounts paying 0.01% or 0.02% APY, so you see why we suggest staying away from these.

We also recommend HYSAs for funds you want to keep close at hand. The money in savings accounts is generally easy to tap with a quick electronic transfer to another account, making it a great place to store your emergency fund. Just make sure to check whether your bank limits the number of monthly transactions you can make, since some cap these at six. And while many of the best savings accounts don't have balance requirements or monthly fees, some do.

You might think of a checking account as temporary or street parking rather than long-term parking. But if you choose an account that earns interest or other rewards and offers benefits to help you save money, there's more reason to include checking in your long-term strategy.

Checking accounts are designed to be accessed quickly and often, so you won't run into any withdrawal restrictions and can often enjoy paycheck and spending perks. You'll also typically have access to ATMs no matter what bank or banking platform you choose, sometimes with ATM fee reimbursements, and it's common to have access to 40,000 or more in-network machines. In terms of perks when you get paid, many of the best accounts include features like early direct deposits and the ability to automatically send some of your pay to savings.

In general, unless in-person branch banking is really important to you, I'd recommend against opening a checking account with a big bank if you want to prioritize rewards. Brick-and-mortar institutions rarely have the best options for earning interest or cash back, and many accounts come with monthly fees. Check out online institutions and fintechs for rewards checking.

Checking accounts we recommend

Wealthfront Cash Account

The Wealthfront Cash Account,⁷ <p>Wealthfront Cash account is offered by Wealthfront Brokerage LLC, Member of FINRA/SIPC. Wealthfront Brokerage is not a bank. We convey funds to partner banks who accept and maintain deposits, provide the interest rate, and provide FDIC insurance. Rate is subject to change.</p> a cash account rather than a true checking account, is available from the popular and trusted brokerage/robo-advisor Wealthfront. It earns 3.50% APY⁸ <p>Rate is current as of 11/07/2025.</p> without minimums or monthly fees, and it includes an optional debit card and ATM fee reimbursements. You don't need to invest with Wealthfront to open a Cash Account, but we do recommend it for money you may want to invest in the near future.

Learn more | Read our full Wealthfront review.

Discover^® Cashback Debit account

The Discover Cashback Debit account⁹ <p>See <a href="https://www.discover.com/content/dam/dfs/online-banking/documents/NationalDepositAccountAgreement.pdf">Deposit Account Agreement</a> for details on transaction eligibility, limitations, and terms.</p> is unique for earning 1.00%¹⁰ <p>Earn 1% cash back on up to $3,000 in debit card purchases each month. See Deposit Account Agreement for details on transaction eligibility, limitations and terms. Deposit Account Agreement can be found at <a href="https://www.discover.com/content/dam/dfs/online-banking/documents/NationalDepositAccountAgreement.pdf">https://www.discover.com/content/dam/dfs/online-banking/documents/NationalDepositAccountAgreement.pdf</a>.</p> cash back on up to $3,000 in debit card purchases each month rather than earning interest on your balance. This one's best if you use a debit card often since you'll earn rewards with each qualifying debit card transaction. I wouldn't suggest keeping a high balance, but using this for your regular spending would be a smart move.

*Details about Discover® Cashback Debit have been collected by FinanceBuzz editors. This information is accurate as of the date of the review and was not reviewed or approved by the issuer. FinanceBuzz does not receive commission for this product.

Read our full Discover checking review.

SoFi Checking and Savings

The SoFi Checking and Savings account is as good for everyday checking as it is for saving. It earns up to 0.50% APY¹¹ <p>Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at&nbsp;<a href="https://www.sofi.com/legal/banking-rate-sheet">https://www.sofi.com/legal/banking-rate-sheet</a></p> on checking with direct deposit, which isn't the most impressive rate, but you're likely to appreciate that you don't need a separate place for your savings with this account.

Learn more | Read our full SoFi Checking and Savings review.

Money market accounts are deposit savings accounts with features found in checking and savings accounts. This type of account typically offers higher APYs than checking accounts and easier access to your money via debit cards and checks, so we recommend it for funds you want to be able to spend directly (versus transfer and then use, like a savings account). We typically see MMA rates being similar to the best HYSA rates, but MMAs can often pay slightly better yields. The average rate for money market accounts is 0.58% (as of 12/15/25), but top accounts pay around 4.00% APY or more.

The trade-off for potentially more interest is that money market accounts may require higher minimum deposits to open and maintain than regular savings accounts, including most high-yield savings accounts. When deciding if a money market account is worth it, consider this and monthly maintenance fees (as MMAs are more likely than HYSAs to charge these).

Money market accounts we recommend

• Quontic Money Market Account: Quontic's MMA frequently elbows the competition out of its way with its high yield of 4.25% (as of 11/03/25) APY and $100 deposit requirement. This is a pretty low minimum for such a competitive MMA, and the account includes a debit card and checks.
• Vio Bank Cornerstone Money Market Savings Account: This account often has one of the highest APYs on the market and also requires just $100 to open. It currently earns 4.03% (as of 10/31/25) APY.
• Ally Money Market Account: I love that Ally has no minimum deposit amount, and you don't have to sacrifice high returns to get it. It earns 3.40% (as of 10/01/25) APY on any balance. No minimum is unusual for an MMA, and this account also stands out for offering ATM fee reimbursements for out-of-network ATM use.

Certificates of deposit, commonly referred to as CDs, are low-risk investments that offer a fixed APY rate for a set period, ranging from a few months to several years. CDs often offer higher APYs than high-yield savings or money market accounts, with rates varying by term length. Terms often range from about six months to five years. Depending on the market, you might earn more on a shorter CD with a term of one year or less, or you might earn more on a longer CD with a term of two years or more.

CDs are a great option if you have a lump sum of cash you don't need immediate access to, but they're not very liquid. You'll typically pay an early withdrawal penalty if you take your money out before it matures. Another thing to consider is that, like savings accounts, CD rates vary by institution. It's important to shop around and compare options from banks, credit unions, and online banking platforms.

CDs we recommend

• Bread Savings CDs: This platform consistently offers some of the highest CD APYs — up to 4.65% in December 2024 — but with a relatively high minimum deposit of $1,500.
• Ally Bank: You can earn up to 3.90% (as of 10/01/25) APY on your CD savings with this bank and, unlike other banks, won't be subject to a minimum deposit.
• Marcus by Goldman Sachs: In addition to offering up to 4.00% (as of 10/29/25) APY, Marcus CDs also have a low minimum deposit of just $500. We regularly see strong rates from this online banking platform (a division of, you guessed it, Goldman Sachs).

If you're looking to take on slightly more risk for the potential of a higher return, we might suggest investing in U.S. Treasury bills (T-bills) and notes. T-bills are debt securities that mature in one month to one year, making them short-term investments, whereas T-notes work as medium- to long-term investments that mature in two to 10 years. Since the U.S. government backs Treasury bills and notes, experts consider them one of the safest investments available.

They can also offer higher yields than savings accounts and money market accounts. And, unlike those other savings vehicles, Treasury securities allow you to lock in your rate when you purchase them. And as a bonus, though you'll still pay federal taxes on your earnings, you won't pay state or local taxes, which isn't the case with the other savings accounts we're covering.

Treasury bills and notes are highly liquid, meaning you can quickly sell them if you need to access your cash. However, if you need to sell your T-bills or notes before they mature, you may receive less than the face value of the security due to changes in interest rates.

Ways to buy Treasury securities

• TreasuryDirect: To buy Treasury securities on the primary market, skip the middleman and buy your securities directly from the U.S. Treasury Department through its TreasuryDirect website.
• Through a brokerage: To buy Treasury securities on the secondary market or in ETFs or money market accounts, purchase through your brokerage account. One of our favorites for this is Fidelity (which also lets you place orders for new Treasuries). Public offers new-issue T-bills as well.

Money market funds are mutual funds that invest in low-risk securities such as certificates of deposit, municipal securities, and government bonds. They are designed to provide a higher yield than traditional savings accounts while maintaining high liquidity. You can typically buy and sell shares of the fund at any time, making them more flexible than other investments like CDs and real estate and a good place to park money you might need.

One of the benefits of money market funds is that they are typically very low-risk investments. This means that your principal investment is relatively safe, and you can expect to earn a modest return.

However, money market funds are not FDIC-insured. While they are relatively safe investments, there is always some risk involved. Additionally, the yields on these funds can fluctuate with market conditions, so you may not always earn the same return on your investment.

Money market funds we recommend

• Fidelity: Fidelity has a few in-house money market funds, including a government fund, a municipal fund, and a general money market fund.
• Charles Schwab: Schwab has over a dozen money market funds, some designed for individuals and others for institutional investors, with minimum investments starting at $0.
• Vanguard: Vanguard has a suite of money market funds, most of which will earn you a higher yield than your savings accounts. Popular funds include VMRXX, the Vanguard Cash Reserves Federal Money Market Fund (VMRXX), with a 0.10% expense ratio.

Series I savings bonds, often simply called I bonds, are unique savings vehicles with interest rates that are actually tied to inflation. They earn a fixed interest rate and an inflation rate, with the latter being adjusted every six months using the current Consumer Price Index. When the Consumer Price Index, which tracks prices for common consumer goods from groceries to gas, goes up, an I Bond's inflation rate goes up and its overall earning rate with it.

Issued by the U.S. Treasury and backed by the full faith and credit of the U.S. government, like Treasury bills, I Bonds are about as safe as they come. However, they have some downsides. For one thing, you'll forfeit interest if you redeem within a year of purchasing, and you can't take regular payments or dividends from I Bonds. You can purchase up to $10,000 in electronic I Bonds per year.

When to consider I Bonds

Consider I Bonds if you want a hedge against high inflation without increasing your overall risk. Just remember that these make the most sense, and earn the most, in inflationary times.

In periods of high inflation, I Bonds become more attractive to investors (rather than less, like some investments). While you shouldn't funnel all of your savings or investments into these bonds, they can be a great addition to a portfolio, especially one that's feeling a little bloated with risk.

If you decide to keep an I Bond for longer than a few years, make sure you're not locking up too much money. Sizable chunks of cash could do you more good in the stock market or another long-term investment with a potential rate of return well above inflation.

Choosing the right account to park your cash in can be challenging, but deciding whether the money is for short-term or long-term use is where we like to start. 

For short-term goals

For short-term funds, including your emergency fund or savings goals you hope to meet in the next few years, the accounts we discussed in this article are a great choice. They have relatively little risk, meaning you don't have to worry about losing your money just before you need it.

However, these accounts aren't ideal for long-term goals. 

For long-term goals

For goals more than five or so years out, especially saving for retirement, consider higher-risk options for the potential of higher returns. You can use your brokerage account to invest in a variety of assets, including stocks, bonds, and funds. Though there's certainly more chance you'll lose your money in the stock market than in a savings account or MMA, it's the best way to earn enough to reach your long-term goals.

What is the safest place to park cash?

FDIC-insured or NCUA-insured savings accounts are the safest place to park cash. If your bank offers FDIC insurance, that guarantees your deposits are protected for at least $250,000 per bank, per depositor, per ownership category in the event of a bank failure. This means you'll get your money back, or whatever you had up to coverage limits, even if the bank goes bankrupt. 

Credit unions offer NCUA insurance, which is essentially equivalent to FDIC insurance.

Where is the best place to park cash for a house down payment?

If you're saving up for a down payment on a house, consider parking your cash in a high-yield savings account. High-yield savings accounts offer higher APY rates than traditional savings accounts, which means you'll earn more money on your cash. Look for an account with no monthly fees or minimum balance requirements. Also, make sure the account is FDIC-insured for safety. However, if your home purchase is more than five years out, you can consider investing some or all of the money into slightly higher-risk assets.

Ultimately, the best place to park your cash will depend on your personal finances. There's no one-size-fits-all solution. Review your short-term and long-term financial plans, risk tolerance, and liquidity needs. By considering these factors, you can make an informed decision on where to park your cash.

Be sure to carefully weigh the pros and cons of each option, such as APYs, liquidity, and risk. Some options allow easy access to your money, while others require you to lock your money up. And some accounts are FDIC-insured, while others have a slightly higher level of risk. There's no right or wrong answer — just different answers, depending on your needs.