Investments Offering Highest Interest Rates: Where To Put Your Money

If you're looking to get the best interest rate on your savings, you'll need to do your research and find competitive offers. The average interest rate on a traditional savings account is only 0.41%, according to the FDIC, but the best savings rates can be found on high-yield accounts, which often pay much more. To earn the highest interest rate, you'll need to have at least $250,000 in your account. You can typically earn much higher interest rates at online banks than you would at a traditional brick-and-mortar bank. However, interest rates are subject to change without notice, so make sure to check your account often so you know how much you're actually earning.

High-yield savings accounts

While high-yield savings accounts are considered safe investments, they are not without their risks. For example, you may lose purchasing power over time due to inflation if interest rates are too low. However, you can typically earn much higher interest rates at online banks than you would at a traditional bank.

To earn the highest interest rate, you'll need to have at least $250,000 in your account. You'll still earn a good interest rate if you can't meet that requirement, but the lower rate won't be as good as what other top picks offer. Additionally, FDIC insurance doesn't cover amounts over $250,000 for single depositors, so you'll have to be okay with some of your money being uninsured or try to keep the money in your account at exactly $250,000 if you want to earn the highest rate.

It's important to note that interest rates are subject to change without notice, so make sure to check your account often so you know how much you're actually earning. A high-yield savings account is a good tool to have in your financial kit, but you may not want to rely on it alone for long-term savings goals, such as retirement.

CDs (certificates of deposit)

CDs, or certificates of deposit, are considered a safe investment option. However, it's important to be aware that if rates are too low, you run the risk of losing purchasing power over time due to inflation. CDs may offer similar or even better interest rates than savings accounts, but there are usually restrictions on how often you can make withdrawals.

CDs are a type of deposit account, and as such, they are a relatively low-risk investment option. This makes them a good choice for those who are risk-averse or who are saving for a specific short-term goal, such as a home down payment or a vacation.

While CDs may not offer the highest interest rates available, they can still be a good option for those who want a relatively safe and stable investment. It's important to remember that interest rates can fluctuate, so it's always a good idea to do your research and compare rates before committing to any investment.

Additionally, it's worth noting that online banks typically offer higher interest rates than traditional brick-and-mortar banks, so it may be worth considering opening a CD with an online bank to maximise your returns.

Money markets

Money market accounts are a good option for those who want to earn a higher interest rate than a traditional savings account, but still want the ability to write a few cheques. The average money market rate is a fraction of a percent, but the best accounts can offer rates that are many times higher. For example, in March 2025, the highest money market rate was 5.00% APY.

Money market accounts are also a good option for those who want to keep their money relatively liquid. This is because they often come with a debit card or check-writing access, which can be useful for those who need to access their funds quickly.

However, it is important to note that money market accounts may not be the best option for those saving for long-term goals, such as retirement. This is because, while they offer higher interest rates than traditional savings accounts, they may not generate the returns needed to reach these types of goals. Additionally, money market accounts can be subject to change without notice, so it is important to check your account often to know how much you are actually earning.

Online banks

While high-yield savings accounts are considered safe investments, they are not the best option if you are saving for a long-term goal such as a child's education or retirement. This is because a savings account probably won't generate the returns needed to reach your goal. However, if you are saving for an emergency fund, a home down payment, a vacation, or another short-term goal, a high-yield savings account is ideal.

It's important to do your research and find competitive offers, as interest rates are subject to change without notice. The average interest rate on a traditional savings account is only 0.41%, but the best savings rates can be found on high-yield accounts, which often pay much more. As of March 18, 2025, the top rate is 4.40% APY.

Other types of deposit accounts, including money markets and CDs, may offer similar or even better rates, but restrict how often you can make withdrawals. With CDs, you also run the risk of losing purchasing power over time due to inflation if rates are too low.

High-interest savings accounts (HISA)

The best savings rates can be found on high-yield accounts, which often pay much more than the average interest rate on a traditional savings account. For example, while the average interest rate on a traditional savings account is only 0.41%, some of the best high-yield accounts pay above 4% APY.

To get the highest interest rate possible on your savings, it's important to do your research and find competitive offers. You can typically earn much higher interest rates at online banks than you would at a traditional brick-and-mortar bank, as they have fewer overhead costs.

As an investment option, a HISA presents very little risk. However, this also means that your rate of return is lower than what you might earn with other investments. A HISA is a good tool to have in your financial kit, but you may not want to rely on them alone for long-term savings goals, such as retirement.

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