Financial security is a worry regardless of whether you have recently stepped into retirement or if you belong to the approximate 4 million Americans projected to retire in 2025. The question remains: Where should you store your funds so they remain secure, easily accessible, and generate interest? In this discussion, we will spotlight five optimal choices.
Claim a bonus of $250 and halt interest payments until 2026 – this credit card is an ideal match!
Learn more here.
1. High-yield savings account
Even though interest rates might be decreasing, it’s not advisable to dismiss high-yield savings accounts. Ultimately, the key is maintaining purchasing power over inflation. Presently, the inflation rate in the U.S. stands below 3%. Therefore, if a high-yield account yields more than 3%, you will effectively counteract inflation, ensuring your funds maintain their value.
If assistance is needed in locating a savings account that yields sufficient returns to outpace inflation,
tap here for a selection of our top picks
.
2. CD certificate
When you have funds that won’t be needed soon, investing them in a certificate of deposit (CD) offers a straightforward method to safeguard your savings. These accounts often provide attractive interest rates without compromising security. If you’re hesitant about tying up your cash over a long duration, rest assured that CDs come with various terms ranging from as short as three months all the way up to ten years, varying according to different banks or credit unions.
For example,
You can view our top picks for 6-month certificates of deposit here.
.
3. Money Market Account (MMA)
Rates on
money market accounts
remains impressively high. An MMA combines the characteristics of both checking and savings accounts, offering interest on your balance while providing quick access to your funds. Additionally, some MMAs include a debit card and check-writing capabilities.
Based on your financial institution, you might utilize your Money Market Account for routine transactions such as paying bills via the internet and withdrawing cash at an ATM.
4. Treasury notes
Government bonds known as treasury notes are backed by the state and are seen as secure places to invest your funds. These treasury notes come with maturity periods of 2, 3, 5, 7, and 10 years and provide interest payments biannually.
U.S. banks
Don’t provide Treasury notes. Rather, buy them directly from TreasuryDirect.gov.
5. Fixed annuity
Fixed annuities are agreements made with insurance firms that provide a set interest rate over a certain duration. As an illustration, you could receive a guaranteed return of 5% when keeping your funds within the annuity for three years.
Fixed annuities can offer additional retirement funds, tax-deferred accumulation, and the possibility of transferring assets to beneficiaries. Typically, insurance providers mandate a minimum investment of $5,000 for acquiring an annuity; however, this requirement might be reduced when the initial payment is contributed to an IRA.
Figuring out where to keep your money is a great method to alleviate another worry from your list and let yourself savor retirement fully.
Warning: The credit card with the top cashback benefits currently offers a 0% introductory APR through 2026.
This credit card
is not merely good – it’s exceptionally impressive, with even our experts choosing to use it themselves.
includes a 0% introductory APR for 15 months, a cashback reward of up to 5%, and all this with absolutely no annual fee!
Tap here for our detailed assessment
to sign up for free and complete the process in merely 2 minutes.
We strongly adhere to the Golden Rule, hence our editorial opinions are solely ours and haven’t undergone prior review, approval, or endorsement by featured advertisers. Motley Fool Money doesn’t encompass every offer available in the market. The editorial material from Motley Fool Money stands apart from The Motley Fool’s editorial content and is produced by an independent group of analysts. The Motley Fool has a
disclosure policy
.
