6 Smarter Places to Stash Your Cash Than Buying CDs

Certificates of deposit (CDs) are a popular way to save money securely while earning some interest. These accounts typically offer fixed interest rates and FDIC insurance, making them a low-risk option for those who want guaranteed returns. 

However, CDs often come with lower yields and, in most cases, require you to lock up your money for a set period.

If you're looking for ways to build wealth while maintaining more flexibility, you may want to consider these smarter alternatives.

Featured High Yield Savings Accounts

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Limited-Time Offer: Earn up to a $300 bonus and up to 4.50% APY on Savings (3.80% APY¹ <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 Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at <a href="https://www.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 Eligible Direct Deposit can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.80% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% 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 1/24/25. There is no minimum balance requirement.&nbsp;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> with +0.70% APY Boost) for 6 Months on new accounts with eligible direct deposit. Terms Apply.² <p>Earn up to 4.50% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.80% APY as of 8/5/25) for up to 6 months. Open a new SoFi Checking &amp; Savings account and enroll in SoFi Plus by 9/3/25. Rates variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#2">sofi.com/banking#2</a>. SoFi Bank, N.A. Member&nbsp;FDIC.</p> FDIC Insured.³ <p><b style="font-family: Rubik, -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, &quot;Helvetica Neue&quot;, Arial, sans-serif;">SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations.&nbsp;Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at&nbsp;<a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.</b></p>

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Premium Savings - 4.00% Annual Percentage Yield⁴ <p>As of 04/30/2025, the Annual Percentage Yield (APY) of the Premium Savings Account offered by Morgan Stanley Private Bank, National Association, Member FDIC is 4.00%. Your interest rate and APY may change at any time and fees may reduce earnings. Please visit <a href="http://etrade.com/ratesheet">etrade.com/ratesheet</a> for information regarding this account's current interest rate and corresponding APY.</p>

Premium Savings offers a powerful 4.00% Annual Percentage Yield.⁴ <p>As of 04/30/2025, the Annual Percentage Yield (APY) of the Premium Savings Account offered by Morgan Stanley Private Bank, National Association, Member FDIC is 4.00%. Your interest rate and APY may change at any time and fees may reduce earnings. Please visit <a href="http://etrade.com/ratesheet">etrade.com/ratesheet</a> for information regarding this account's current interest rate and corresponding APY.</p> FDIC insured up to $500,000⁵ <p>The Premium Savings Account gives Morgan Stanley Private Bank, National Association, Member FDIC the ability to send any amount held on deposit in your Premium Savings Account to other depository accounts at Federal Deposit Insurance Corporation ("FDIC") member banks with the purpose of affording you additional FDIC insurance coverage. It is designed to offer up to $500,000 in FDIC coverage to individual accounts (up to $1 million for joint accounts). Certain conditions must be met. <a href="https://us.etrade.com/l/f/agreement-library/premium-savings-bank-deposit-program">Learn more</a>.</p> once certain conditions have been satisfied. No minimum initial deposit,⁶ <p class="">No minimum initial deposit is required to open an account.&nbsp; However, account must be funded within 30 days to remain open.</p> and no monthly account fees.

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American Express® Savings - 3.50% annual percentage yield (APY)⁷ <p>The Annual Percentage Yield (APY) as advertised is accurate as of July 23, 2025. Interest rate and APY are subject to change at any time without notice before and after a High Yield Savings Account is opened.&nbsp;</p>

High Yield Savings Account. No Minimum Required Deposit or Balance.⁸ <p class="">There is no minimum balance required to open your Account, to avoid being charged a fee, or to obtain the Annual Percentage Yield (APY) disclosed to you.</p> Terms Apply.

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A high-yield savings account (HYSA) could offer a more flexible alternative to CDs while still providing competitive interest rates.

Some online banks offer rates of 4.00% APY or more, significantly higher than the current national average for traditional savings accounts, which is about 0.41% APY. 

Unlike CDs, a HYSA allows you to withdraw funds without penalties, making it a great option for an emergency fund or short-term savings goal.

Just be mindful of withdrawal limits, as some banks may cap the number of transactions per month.

See our picks for the top high-yield savings accounts 

Money market accounts (MMAs) blend the benefits of savings and checking accounts, offering competitive interest rates with easy access to funds while still being FDIC-insured. 

Some MMAs may provide interest rates close to or higher than CDs but with added perks like debit card access and check-writing privileges.

This option would work well for savers who want to earn a solid return while maintaining liquidity.

Investing in dividend stocks could provide a reliable stream of passive income while allowing your money to grow over time.

Many established companies pay dividends, and some offer yields that may exceed what you'd earn with a CD. For example, Starbucks and Home Depot offer shareholders dividend yields of around 2.5%, with the potential for stock price appreciation as well.

While stocks always carry more risk than CDs, choosing solid dividend-paying companies could help balance stability and long-term growth.

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Gold has long been a hedge against inflation and market uncertainty, making it a popular option for diversifying savings.

Unlike CDs, which lose value in real terms when inflation rises, gold has historically maintained its purchasing power over time. Investors can purchase physical gold or buy into mutual funds that invest in gold and gold companies, each offering different levels of liquidity and risk.

While gold doesn't generate interest like a CD, its ability to act as a store of value could make it a worthwhile addition to your financial strategy.

Bond funds could offer a more flexible and potentially higher-yielding alternative to CDs. These funds may invest in a diversified mix of bonds, including government bonds issued by the U.S. Treasury, corporate, and municipal bonds, providing varying levels of risk and return.

Short-term bond funds, which focus on bonds with a maturity period of one to three years, may offer competitive returns with lower volatility than stocks. 

While bond funds aren't FDIC-insured like CDs, they could provide greater liquidity and inflation protection, making them a strong option for diversifying your savings and helping you lower your financial stress. 

Mutual funds offer a diversified way to grow your savings by pooling money from multiple investors to buy stocks, bonds, or other assets. Unlike CDs, mutual funds have the potential for higher returns, though they also come with more risk.

Some mutual funds focus on conservative investments like bonds, while others target growth through stocks. 

If you're looking for a flexible, professionally managed investment that can outpace inflation, mutual funds could be a better long-term option than locking your money into a CD.

If you're looking for alternatives to CDs, these options may offer better returns, more flexibility, or both. Whether you choose a high-yield savings account, dividend stocks, or gold, your money could work harder for you in the right financial vehicle.

One key consideration? Inflation. Many traditional savings products struggle to keep up with rising costs, so exploring alternatives that protect your purchasing power could help you prepare yourself financially for the future.

Where will you put your money to maximize its potential?