The 5 Best Places for Retirees to Keep Their Cash
KEY POINTS
- Although they may not be sexy, high-yield savings and money market accounts are still a good way to protect your money while having easy access to it.
- If you don't expect to need the cash for some time, a certificate of deposit, treasury note, or fixed annuity may be more to your liking.
- There's no rule saying you can't spread your money out and take advantage of the account types that appeal to you most.
Money is a concern whether you've been retired for years or you're one of the roughly 4 million Americans expected to retire in 2025. Specifically, where can you keep your cash that is safe, easy to access, and earns interest? Here, we're highlighting five of the best options.
1. High-yield savings account
Interest rates may be on the way down, but that doesn't mean you should rule out a high-yield savings account. After all, it's all about staying ahead of inflation. The current rate of inflation in the U.S. is under 3%. As long as a high-yield account earns more than 3%, you're outpacing inflation, and your money retains its worth.
If you need help finding a savings account that earns enough to beat inflation, click here for some of our favorites.
2. Certificate of deposit (CD)
If you have a chunk of money you don't expect to need for a while, putting it into a CD is another easy way to protect your money. CDs can offer impressive rates while keeping your nest egg safe. And if you're concerned about locking your money into a CD for an extended period, there's no need to worry. CDs vary in length, from three months to 10 years, depending on the financial institution.
Our Picks for the Best High-Yield Savings Accounts of 2024
| Product | APY | Min. to Earn | |
American Express® High Yield Savings
Member FDIC.
APY
3.80%
Rate info
3.80% annual percentage yield as of December 27, 2024. Terms apply.
Min. to earn
$0
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
3.80%
Rate info
3.80% annual percentage yield as of December 27, 2024. Terms apply.
|
$0
|
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
Capital One 360 Performance Savings
Member FDIC.
APY
3.80%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn
$0
Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website. |
3.80%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.
|
$0
|
Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website. |
Western Alliance Bank High-Yield Savings Premier
Member FDIC.
APY
4.46%
Rate info
The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
Min. to earn
$500 to open, $0.01 for max APY
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
4.46%
Rate info
The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
|
$500 to open, $0.01 for max APY
|
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
For example, you can check our favorite 6-month CDs here.
3. Money market account (MMA)
Rates on money market accounts remain impressively high. An MMA blends the features of checking and savings, paying interest on your balance while allowing fast access to your cash. Some even come with a debit card and check-writing privileges.
Depending on your bank or credit union, you can use your MMA to conduct everyday business, like paying bills online and withdrawing money from an ATM.
4. Treasury notes
Treasury notes are government-backed securities and are considered a safe haven for your money. Treasury notes are issued with maturities of two, three, five, seven, and 10 years and pay interest every six months. U.S. banks don't offer Treasury notes. Instead, you purchase them directly from TreasuryDirect.gov.
5. Fixed annuity
Fixed annuities are contracts with insurance companies that offer a fixed interest rate for a specified period. For example, you may earn a guaranteed 5% for leaving your money in the annuity for three years.
Fixed annuities provide extra retirement income, tax-deferred growth, and the potential to pass money on to your heirs. Most insurance companies require a minimum deposit of $5,000 to purchase an annuity, but they will sometimes lower the minimum if the deposit is made as part of an IRA.
Knowing where to stash your cash is an excellent way to lift one more concern off your plate and allow you to simply enjoy retirement.
Our Research Expert
Dana is a full-time personal finance writer, with more than two decades of experience. Her focus is on helping readers feel less alone as they navigate their personal finances and offering actionable insights.
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