You can grow your savings without risky investments like stocks. Here are seven simple and low-risk options:
- High-Yield Savings Account
High-yield savings accounts offer APYs of 2% or more, far higher than traditional accounts. Banks like SoFi, Discover, and Capital One, as well as local credit unions, provide competitive rates. - Money Market Account
Money market accounts combine savings and checking features, offering interest rates between 2% and 3%. They include check-writing and debit card access but have variable interest rates. - Certificate of Deposit (CD)
CDs lock in your funds for fixed terms (6 months to 5 years) and provide interest rates of 3%–4%. Longer terms yield higher rates but restrict early withdrawals. - CD Ladder
Divide your money into CDs with different terms to access funds periodically while still earning long-term rates. - Bank Bonuses
Some banks offer bonuses for opening new accounts. These bonuses may have requirements, like maintaining a minimum balance or meeting deposit thresholds. - Rewards Checking Account
Rewards checking accounts offer cash bonuses, cashback, or higher interest rates. These accounts may have specific requirements but can provide good returns. - I-Bonds
I-bonds are inflation-linked savings bonds with current rates up to 9.62%. They’re suited for long-term savings, with penalties for early withdrawals before five years.
Final Tips
Choose accounts based on your financial needs:
- Use high-yield accounts or CD ladders for larger sums.
- Opt for flexible accounts like money market or savings accounts if you need regular access.
- Match account terms to your savings goals, whether short- or long-term.
These options let you grow your savings securely while minimizing risks.
