This Week's Top Rates Can Help Your Cash Stay Ahead of Inflation
This Week's Top Rates Can Help Your Cash Stay Ahead of Inflation.
With inflation at 3.5%, cash needs to earn more than that to maintain its purchasing power.
Dozens of low-risk accounts offer 4% to 5%, giving savers plenty of ways to put idle cash to work.
Savings accounts keep money accessible, while CDs and Treasurys can help lock in today's higher rates.
Every week, we track the best-paying cash options across savings accounts, CDs, brokerages, robo-advisors, and Treasurys—bringing them together so you can see your strongest low-risk choices in one place.
With inflation now running at 3.5% , cash earning more than that can help maintain its purchasing power. And savers have plenty of options: Dozens of low-risk accounts are currently offering rates between 4% and 5%, while standard savings accounts continue to pay far less.
The current standout is a 4-month CD paying 5.00%, providing an excellent choice for savers looking to score an elite APY on cash they can set aside for a short stretch. You can find it in our ranking of the best nationwide CDs , alongside other leading yields on terms up to 5 years.
High-yield savings accounts also remain competitive. The top savings account in our daily ranking of the best high-yield savings accounts now pays 4.26% APY without notable strings attached, and more than 20 accounts are still offering at least 4.00%.
Brokerage and robo-advisor cash accounts are generally paying less than 4%, so they trail the top CDs and savings accounts. But for cash you want to keep close to your investment accounts, many still offer reasonably competitive yields without requiring an extra move.
U.S. Treasurys remain another low-risk option, with a current top rate of X.XX%. I bonds, meanwhile, got a rate boost on May 1 , with new purchases earning 4.26% for their first six months.
The chart below brings those top cash rates together so you can easily compare today's leading low-risk options.
Inflation registered 3.5% in June, so cash needs to earn at least that much to maintain its buying power. Even if you can't fully match it, moving your money closer to that rate can help limit the loss.
Keeping your cash parked doesn't mean it has to sit idle. The right account can turn even short-term savings into real earnings.
A lump-sum savings deposit of $10,000—or $25,000 or $50,000, if you have it—can earn hundreds of dollars in interest if you choose one of today's top rates. Whether you opt for a 3.25% cash management account, a top high-yield savings paying 4.26%, a top CD paying 5.00% —or anything in between—here's what different balances could earn over six months.
The rate you earn from a savings account, money market account, cash account, or money market fund is variable and will generally drop whenever the Fed cuts rates. In contrast, CDs and Treasurys allow you to lock in your yield for a set period.
For a low-risk return that still pays, today's top cash options fall into three main categories—each with different trade-offs depending on how long you plan to keep your money parked.
Bank and credit union products: Savings accounts, money market accounts (MMAs) , and certificates of deposit (CDs)
Brokerage and robo-advisor products: Money market funds and cash management accounts
U.S. Treasury products: T-bills , notes, and bonds, plus inflation-protected I bonds
