4 ways to earn more than a traditional savings account

If you’re not saving money in a high-income account today, you might be Benefit missed out Today’s high interest rate environment.

The National average savings rate — which includes traditional savings accounts at large, national banks — is just 0.42%. But you can earn more than 10 times from today, still Keep your money safe And accessible within an account that accrues interest on your deposited money.

The specific account you choose may depend on details like your timeline, deposits, how much interest you want, and how often you want to access your savings, but the four options below may be good options for savers to maximize interest today. Also, you can also choose to combine them to maximize earnings towards different savings goals.

Find out how much you can earn now with today’s top savings rates.

4 ways to earn more than a traditional savings account

You can use these four different savings vehicles to start earning more on your balance today.

High Yield Savings Account

A High Yield Savings Account Provides the flexibility of a traditional savings account with the added bonus of a competitive interest rate. Today, an online bank account can help you earn between 4% and up 5% APY.

These accounts allow you to contribute to your savings balance and transfer funds in and out whenever you want. That makes them ideal for you Emergency savingswhich you may need to access quickly, but also for any short-term savings goals.

Compare the top high-yield savings accounts from online banks today to start growing your savings balance!

Money Market Account

Money Market Account Similar to high-yield savings accounts — and competitive high-yield money market options may offer similar 4% to 5% APYs — there are some important differencevery

For one, these accounts come with higher minimum balance requirements. While some high-yield savings accounts require minimum deposits to earn the best rate, these restrictions may be more common among money market accounts. Money market accounts usually come with the added benefit of debit card or check-writing access. Although this is less common among savings accounts, it can be useful if you need to access your emergency fund at a moment’s notice.

Certificate of Deposit (CD)

Certificate of Deposit (CD) Another common way to save. they are different CD type which offer different terms and different levels of access. But a regular high-yield CD usually requires a deposit to be locked in after opening, which will earn interest at a fixed rate for a fixed period. When the CD matures, you can withdraw your original deposit and interest without penalty.

CDs are among the most profitable ways to save today, with some Short term CDs Earnings on top of 5.25% APY. Long term CDCan be useful for, too Today’s high rate locking Up to 10 years. But it’s important to choose your CD carefully. If you choose to withdraw early, you may risk penalty fees worth a portion (or all) of your earned interest).

Compare today’s top CD rates here now!

Money market funds

Money market funds differ from the options above because you typically open them through a brokerage account rather than a bank. These are mutual funds that are invested in low-risk investments and may offer slightly higher returns than high-yield deposit accounts.

“Most competitive money markets are paying close to 5%, if not more in some cases,” says Sean Ballinger, CFP, founder of Columbus Street Financial Planning.

Another important thing to remember is that money market funds – unlike savings accounts, money market accounts or CDs – are not FDIC-insured. Although investments in funds are less risky than stocks, you lose the security of federal insurance. They can still be profitable short-term investments, but it’s important to make sure you know all the details before opening.

“These funds are typically designed to not lose value and have yields that can be higher than high-yield savings accounts,” said Adam Van Wee, CFP and chief operating officer of Van Wee Financial. “The only downside is that you have to sell the mutual fund to access the cash, so it can take a day for the money to clear and be ready to transfer for spending.”

Bottom line

There are many types of accounts a saver can use to get started Benefit from high interest rates today. Whether you’re looking for a place to keep your emergency fund, savings you want to use for a specific goal a few years down the road, or short-term, low-risk investments — there’s an account for you. Before you make a decision, make sure you understand the full details of any account you’re considering — and how it can help you reach your financial goals.

Compare the top CD rates here today to get started!