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

When it comes to managing your money, determining where to keep your cash is crucial for not only keeping it safe but also growing your wealth.

The accounts we recommend for parking your cash are high-yield savings 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. We’ll go over who each option is best for and when it makes sense.

When it’s best: You want a high return on your savings while keeping your cash easily accessible — but not too easily.

High-yield savings accounts (HYSAs) are ideal for parking cash 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 2024, you can earn an annual percentage yield (APY) upwards of 3.50% or 4.00%¹ <p class="">The product and annual percentage yield (APY) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your area. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. Always verify account details and availability with the financial institution before opening an account.<br></p> .

To put this into perspective, the national average rate on savings accounts, as reported by the FDIC, is 0.43% (as of 11/18/24). But know what 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.

Savings accounts we recommend

• Barclays Tiered Savings: This HYSA has one of the highest APYs on the market, up to 4.65%, without pesky minimums to open² <p>Barclays Tiered Savings Annual Percentage Yields (APYs) are accurate as of 12/16/24 and may change at any time without prior notice, before or after the account is opened. The APYs are determined by the Balance Tiers (Tiers) and the amount deposited. The same rate may apply to multiple Tiers and Tiers may change without notice. APY is calculated based on the Tier into which the end of day account balance falls. Fees could reduce the earnings on the account. No minimum balance to open, but for interest to post to your account you must maintain a minimum balance that would earn you at least $0.01. Please see the Compare Account Page for current Tier and APY information.</p> . Consider this option if you don’t need to make cash deposits or withdrawals.
• CIT Bank Platinum Savings: Best for high balances, you’ll earn an elevated 4.35% APY if your savings balance is $5,000 or higher.³ <p>Platinum Savings is a tiered interest rate account. Interest is paid on the entire account balance based on the interest rate and APY in effect that day for the balance tier associated with the end-of-day account balance. APYs — Annual Percentage Yields are accurate as of December 20, 2024: 0.25% APY on balances of $0.01 to $4,999.99; 4.35% APY on balances of $5,000.00 or more. Interest Rates for the Platinum Savings account are variable and may change at any time without notice. The minimum to open a Platinum Savings account is $100.</p>
• SoFi Checking and Savings: Earn a high return of up to 4.00% APY on your savings and possibly qualify for a sign-up bonus when you open an account.⁴ <p>SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a></p> ⁵ <p>New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) <b>OR</b> $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at <a href="http://sofi.com/banking">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.</p> <p>SoFi members with Direct Deposit can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.00% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a></p> Plus, get access to automated savings features including round-ups.

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Barclays Tiered Savings – Earn 4.35% APY² <p>Barclays Tiered Savings Annual Percentage Yields (APYs) are accurate as of 12/16/24 and may change at any time without prior notice, before or after the account is opened. The APYs are determined by the Balance Tiers (Tiers) and the amount deposited. The same rate may apply to multiple Tiers and Tiers may change without notice. APY is calculated based on the Tier into which the end of day account balance falls. Fees could reduce the earnings on the account. No minimum balance to open, but for interest to post to your account you must maintain a minimum balance that would earn you at least $0.01. Please see the Compare Account Page for current Tier and APY information.</p> with no minimum deposit.

High-yield savings account. Earn up to 4.65% APY with a minimum balance of $250,000 or more.

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CIT Bank Platinum Savings - 4.35% APY³ <p>Platinum Savings is a tiered interest rate account. Interest is paid on the entire account balance based on the interest rate and APY in effect that day for the balance tier associated with the end-of-day account balance. APYs — Annual Percentage Yields are accurate as of December 20, 2024: 0.25% APY on balances of $0.01 to $4,999.99; 4.35% APY on balances of $5,000.00 or more. Interest Rates for the Platinum Savings account are variable and may change at any time without notice. The minimum to open a Platinum Savings account is $100.</p>

High Yield Savings Account. $5,000 minimum balance. FDIC Insured.

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SoFi Checking & Savings - Earn Up to $300 When You Set Up Direct Deposit

Earn up to 4.00% APY⁵ <p>New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) <b>OR</b> $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at <a href="http://sofi.com/banking">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.</p> <p>SoFi members with Direct Deposit can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.00% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a></p> and collect up to a $300 cash bonus with direct deposit or $5,000 or more in qualifying deposits.⁴ <p>SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a></p> FDIC Insured.⁶ <p><b>SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/terms">SoFi.com/banking/fdic/terms</a> See list of participating banks at <a href="http://sofi.com/banking/fdic/receivingbanks">SoFi.com/banking/fdic/receivingbanks</a></b></p>

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When it’s best: You want a savings vehicle with some features of a checking account that make it easier to spend your money.

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 0.60% (as of 11/18/24), 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 4.75% (as of 11/19/24) 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 4.66% (as of 12/20/24) 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 3.80% (as of 12/11/24) 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.

When it’s best: You’re comfortable locking up your money for a while in exchange for a higher return.

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 4.40% (as of 10/28/24) 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 4.25% (as of 12/16/24) 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).

When it’s best: You want a slightly higher return than you can get in a savings or money market account, and you’re willing to take on a bit more risk to get it.

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.

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Public - Treasury Bills - 5.50% Yield⁷ <p>Yield is an annualized 26-week T-bill rate (as of 2/16/24) when held to maturity. Rate is gross of fees. T-bills are purchased in increments of $100 par value at a discount; any remaining balance after purchase is held in cash.</p>

Investing Account. $100 minimum deposit. SIPC Insured through partners.⁸ <p>Treasury Accounts are custodied at The Bank of New York Mellon. Balances below $500k are covered by SIPC insurance. The underlying Treasury bills held in the account are fully backed and guaranteed by the US Government. Investments in Treasury bills are not FDIC insured or bank guaranteed, as this type of protection only applies to savings accounts and other banking products.</p>

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When it’s best: You’re comfortable accepting more risk in exchange for a higher potential return.

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.

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 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 goals more than five or so years out — especially saving for retirement — you’ll probably want to choose 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 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 savings accounts are the safest place to park your 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 at least anything you had up to coverage limits — even if the bank goes bankrupt.

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

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.