1. High-Yield Savings Accounts with Competitive APYs

Most people have a savings account. But too many people keep their money in a savings account that isn’t growing their money as fast as it could be. As of Sept. 16, 2024, the national average interest rate on a savings account was just 0.46%. 

Financially savvy people know to look for high-yield savings accounts with a competitive APY. This lets you steadily grow your savings while still having easy access to your money — and without the risk of other investments.

Why It’s Savvy:

• High-yield savings accounts offer competitive APYs — usually much higher than the national average. This allows your money to earn more interest and compound over time. It’s a great balance between security and growth.
• You can access your money whenever you need to without penalties.
• Many savings accounts are FDIC-insured, which means your deposits are protected up to $250,000 in case of bank failure.

How You Can Use It:

• Look for online banks or credit unions that offer higher APYs, often well above the national average.
• Use your savings account for short- to medium-term goals, where you might need quick access to funds, like an emergency fund or saving for a vacation.

2. Checking Accounts with High APYs

Checking accounts aren’t typically known for having high APYs. Most people use them for their day-to-day transactions, so earning high interest isn’t always a consideration. But savvy people know that some banks and financial institutions offer checking accounts that come with a high APY, allowing you to earn interest on your everyday balance.

Any opportunity to earn low-risk returns on your money is worth exploring. And high-yield checking accounts are a great example.

Why It’s Savvy:

• You still have the convenience of a checking account for bills and purchases, but with the added benefit of earning interest.
• Many high-APY checking accounts come with few fees and minimal balance requirements, making them cost-effective for most people.
• While it may not offer the same high returns as other accounts, the interest you earn can add up over time, especially with regular deposits.

How You Can Use It:

• Shop around for checking accounts that offer competitive APYs, often found at online banks or credit unions.
• Keep only the amount you need for monthly expenses in this account, ensuring you maintain liquidity while still earning some interest.

Explore the best high-yield checking accounts of 2024 here to see how much more you could be earning on your day-to-day balance. 

3. Certificates of Deposit

You’ve probably heard of a Certificate of Deposit, or CD. These are financial products where you deposit a fixed amount of money for a specified term in exchange for a guaranteed interest rate. CDs are a great way to lock in a higher rate of return than a savings account can offer, without taking on significant risk. Variable-rate certificates also offer relatively low risk with a fluctuating interest rate.

Why It’s Savvy:

• CDs offer a fixed interest rate, meaning your return is predictable and not subject to market fluctuations.
• The longer the term of the CD, the higher the interest rate usually is, giving you the opportunity to grow your money more quickly.
• Like savings accounts, CDs are FDIC-insured, offering protection for your investment.

How You Can Use It:

• Use CDs for savings you don’t need immediate access to, like for a home down payment or college fund, to take advantage of higher interest rates.
• Consider laddering your CDs, which means buying multiple CDs with different maturity dates. This gives you the flexibility to access funds regularly while still benefiting from higher long-term rates.

4. Annuities

Annuities are financial products offered by insurance companies that provide a steady stream of payments in exchange for an upfront investment. Annuities are a low-risk, long-term option often used by financially savvy people to ensure a reliable income during retirement.

Why It’s Savvy:

• Annuities offer guaranteed payments, which can be structured to last for a set number of years or for the rest of your life.
• Many annuities come with the option to earn interest on your investment, providing steady returns over time.
• Unlike traditional investments like stocks, annuities protect your capital from market volatility, making them a secure way to ensure long-term income.

How You Can Use It:

• Consider annuities as part of your retirement planning, particularly if you’re looking for a guaranteed income stream after you stop working.
• Look for annuities that offer favorable interest rates and low fees.

Find the right annuity for your situation here to lock in guaranteed income in retirement.

5. Gold

If the past few years have shown us anything, it’s that disruptions to the market can come out of nowhere. Between the pandemic, supply-chain issues and bear markets, a lot of people’s retirement savings felt the impact. 

That’s why it can be a smart idea to look for ways to protect your retirement savings from the unpredictable. For a lot of people, investing in gold and precious metals is a way to diversify and protect their investments.

Why It’s Savvy:

• Investing in precious metals like gold and silver can help diversify your portfolio and protect you against market volatility.
• Precious metals often outperform other investments in a volatile market, and their value tends to rise with inflation, making them an effective hedge during uncertain economic times.
• Gold has historically maintained its value.

How You Can Use It:

• One way to invest is with a precious metals IRA.
• When you open a gold or silver IRA, you can typically roll over funds from existing retirement accounts. Or you can buy gold and silver directly from the precious metals dealer. 
• Worried you may need to sell your precious metals in the future? Many dealers offer buyback commitments and will purchase your assets back from you at the highest price.

Get Started:

Want to diversify your portfolio and hedge against economic uncertainty? It’s easy to get started, and many dealers offer a free kit to allow you to learn more before you invest.

Bottom Line

Low-risk accounts that offer stable returns are a financially savvy move for anyone. They can offer a foundation for building wealth without risking your hard-earned capital. 

Want to enjoy reliable returns while ensuring your money stays secure? These options offer stability and steady growth that savvy investors trust. Compare our top-rated options here to get started.

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