The Best Places to Park Your Cash Right Now (2025 Edition)

Where to find the best yield, from savings accounts to CDs.

When I first published the original version of this post, interest rates hadn’t been higher in many years. We were in the midst of high inflation, and the Federal Reserve was raising rates to get it under control. That mostly worked, and the Fed began cutting again in September 2024 when they cut rates by 50 basis points. They cut rates again by 25 basis points each in November and December. Interest rates on savings products have responded in kind.

With increasing economic uncertainty around trade and the possibility of a recession on the horizon, there’s the question of whether the Fed will cut rates further this year. So far, they are holding steady, but if things get really bad, we will probably see more cuts. This should play into your decision of what to do with your cash. If you expect rates to rise, a savings account may be the best place for your money. If you expect rates to fall, a CD can help lock in a rate.

There are still lots of great high-yield products available — from savings accounts to CDs. But to find the best rates, you have to look at online banks. Brick-and-mortar banks like Chase and Bank of America pay almost nothing on deposits. While they may come in handy if you need a physical branch location, if you want a place where you can park your cash and earn as much interest as you can, they’re no good.

Here are some places you can put your cash right now and maximize your return.

Savings Accounts

Savings accounts are going to offer the most flexibility out of all your options. They offer a place to put your money while earning a variable interest rate. When rates rise across the board, many savings accounts increase their rates. And when rates fall, savings accounts typically fall as well (although you’ll find that most banks are quicker to drop their rates than raise them). While federal banking regulations no longer mandate a maximum of six withdrawals per month, many banks maintain those caps. Most importantly, your money is FDIC-insured for up to $250,000 per account owner per account category.

1. Ally - 3.60%

Account Fees: No

Account Minimums: No

Unique Features: Up to 30 buckets to split your savings goals

The Catch: None

2. Discover - 3.60%

Account Fees: No

Account Minimums: No

Unique Features: None

The Catch: None

3. Marcus - 3.75%

Account Fees: No

Account Minimums: No

Unique Features: None

The Catch: None

4. SoFi - 3.80%

Account Fees: No

Account Minimums: No

Unique Features: Up to 20 vaults to split your savings goals, roundups on debit card purchases and up to $3 million of optional FDIC coverage

The Catch: Must set up direct deposit into a SoFi checking or savings account to receive the highest rate

5. CIT - 4.10%/4.00%

CIT has two savings accounts with high rates:

Platinum Savings - 4.10%

Account Fees: No

Account Minimums: $100 to open

Unique Features: None

The Catch: Must maintain a balance of at least $5,000 to earn 4.10%, otherwise rate is 0.25%

Savings Connect - 4.00%

Account Fees: No

Account Minimums: $100 to open

Unique Features: None

The Catch: None

6. Bask Bank - 4.20%

Account Fees: No

Account Minimums: No

Unique Features: None

The Catch: None

7. Forbright Bank - 4.25%

Account Fees: No

Account Minimums: No

Unique Features: None

The Catch: None

8. EverBank - 4.30%

Account Fees: No

Account Minimums: No

Unique Features: None

The Catch: None

9. LendingClub - 4.40%/3.40%

Account Fees: No

Account Minimums: No

Unique Features: None

The Catch: Must make at least $250 in deposits per month to earn the higher rate (with a two-month grace period); otherwise, the standard rate applies.

10. Openbank - 4.40%

Account Fees: No

Account Minimums: $500 to open

Unique Features: None

The Catch: None

11. Axos Bank - 4.66%/4.00%

You have two options with Axos:

Axos ONE - 4.66%

Account Fees: No

Account Minimums: No

Unique Features: None

The Catch: Must be paired with a checking account and meet one of two requirements to qualify for highest rate: 1) “Receive at least $1,500 in total monthly qualifying direct deposits and maintain an average daily balance of more than $1,500” or 2) “Receive at least $5,000 in total monthly qualifying deposits and maintain an average daily balance of more than $5,000”

Summit Savings - 4.00%

Account Fees: No

Account Minimums: No

Unique Features: None

The Catch: None

Money Market Accounts

Money market accounts are very similar to savings accounts but with some of the features of checking accounts, like the ability to write checks and debit cards. Sometimes money market accounts offer higher rates than savings accounts, but it varies.

1. Discover - 3.50%/3.55%

Account Fees: No

Account Minimums: No

Unique Features: None

The Catch: Account pays 3.50% for balances under $100,000 and 3.55% for balances $100,000 and over

2. Ally - 3.60%

Account Fees: No

Account Minimums: No

Unique Features: None

The Catch: None

3. Sallie Mae - 3.90%

Account Fees: No

Account Minimums: No

Unique Features: None

The Catch: No debit card

4. EverBank - 4.00%

Account Fees: No

Account Minimums: No

Unique Features: None

The Catch: 4.00% interest for account balances of $10,000 or higher, otherwise 2.02%

5. Vio Bank - 4.36%

Account Fees: No

Account Minimums: $100 to open

Unique Features: None

The Catch: None

6. Zynlo - 4.40%

Account Fees: No

Account Minimums: No

Unique Features: None

The Catch: None

Money Market Funds

Money market funds present another great savings option with some of the most attractive rates right now. Not to be confused with money market accounts, these are a type of mutual fund that invest in cash and low-risk short-term treasuries and corporate bonds with a maturity date of 1 year or less.

Unlike savings accounts, money market funds have fees in the form of expense ratios, so you need to take that into account when looking at the latest rate. They also don’t have the same FDIC protections as savings accounts, money market accounts and CDs. Money market funds work to maintain the value of their shares at $1. But there is always the risk that a fund loses value during a crisis, as happened in 2008. Federal regulations since then have made that unlikely to reoccur, but you should still understand the very low risk money market funds carry compared to FDIC-insured bank accounts.

1. Vanguard Federal Money Market Fund (VMFXX) - 4.23%

Expense Ratio: 0.11%

Minimum Investment: $3,000

2. Schwab Prime Advantage Money Fund (SWVXX) - 4.16%

Expense Ratio: 0.34%

Minimum Investment: $0

3. Invesco Government Money Market Fund (INAXX) - 4.12%

Expense Ratio: 0.32%

Minimum Investment: $1,000

4. Fidelity Money Market Fund (SPRXX) - 4.02%

Expense Ratio: 0.42%

Minimum Investment: $0

5. JPMorgan Prime Money Market Fund (VMVXX) - 3.98%

Expense Ratio: 0.50%

Minimum Investment: $1,000

CDs

A certificate of deposit (CD) is a great alternative to a savings account if you want to lock in a rate. That way, if interest rates start falling, you’re still earning a great rate on your savings. On the other hand, CDs come with the risk that if rates rise dramatically, a variable-rate savings account starts exceeding the rate on the money you’ve just locked up. It’s a delicate balancing act that requires you to consider where rates may be headed as well as your goals and time horizon. Here are some selected rates that look attractive now.

1. CIT - Up to 3.50%

13-Month: 3.50%

Account Fees: No

Account Minimums: $1,000 to open

2. Ally - Up to 4.00%

6-Month: 4.00%

9-Month: 3.90%

1-Year: 3.85%

Account Fees: No

Account Minimums: No

3. Discover - Up to 4.00%

9-Month: 4.00%

1-Year: 4.00%

18-Month: 3.80%

2-Year: 3.80%

Account Fees: No

Account Minimums: No

4. Forbright - Up to 4.00%

9-Month: 4.00%

1-Year: 4.00%

Account Fees: No

Account Minimums: $1,000 to open

5. EverBank - Up to 4.10%

6-Month: 3.90%

7-Month: 4.10%

9-Month: 3.80%

1-Year: 3.80%

Account Fees: No

Account Minimums: $1,000 to open

6. LendingClub - Up to 4.10%

6-Month: 4.00%

1-Year: 3.75%

14-Month: 4.10%

Account Fees: No

Account Minimums: $500 to open

7. Limelight Bank - Up to 4.25%

6-Month: 4.25%

1-Year: 4.20%

18-Month: 4.00%

Account Fees: No

Account Minimums: $1,000 to open

8. Marcus - Up to 4.40%

9-Month: 4.30%

1-Year: 4.25%

14-Month: 4.40%

Account Fees: No

Account Minimums: $500 to open and earn rate

9. Sallie Mae - Up to 4.40%

1-Year: 4.40%

13-Month: 4.40%

15-Month: 4.40%

Account Fees: No

Account Minimums: $2,500 to open

Don’t Just Chase Yield

It’s not always worth it to go for the highest-paying savings product. Many more obscure banks offer unusually high rates as a short-term promotional offer but don’t tend to keep up with the average over the long term. These banks may offer higher rates for new customers while existing customers are stuck with lower rates. This is the sort of bait-and-switch tactic you get when chasing yield. On the other hand, well-known banks like Discover and Ally pay relatively modest rates but consistently increase their rates as interest rates overall rise.

It’s also not always worth it to move your money for a fraction of a percentage point. Opening a new account and moving money can be a hassle, and at the end of the day, we’re talking about a few dollars more in interest.

Using Cash Wisely

No matter how good a rate sounds, cash is still not a good long-term investment that will beat inflation.

You should carefully consider your goals before putting a large sum of money in a savings account, CD or money market fund. You should use one of these accounts if you’re keeping money for an emergency or have some sort of goal within the next 5 to 7 years. Long-term money should still go into long-term assets, like stocks.

If you still have savings in a brick-and-mortar bank, there’s no reason to keep it there any longer. If your cash is going to sit in a bank account, you might as well earn some money on it.