Where to Park Your Cash
Updated
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You have a lot of choices for where to park your cash, but you shouldn't just toss it in the first account you come across. Take your time. Shop around. Remember, what's right for your neighbor may not be right for you. But everyone's gotta start somewhere. This guide will make the comparison easy.
Find the right place to keep your money by focusing on the following:
When deciding where to park your cash, consider the following major account types.
A high-yield savings account is designed to hold money you plan to spend within the next few years or for your emergency fund. Some accounts limit you to six free withdrawals per month (per Regulation D) and you probably won't get an ATM card or check-writing capabilities, but you can earn interest on your account.
Just as with checking account funds, cash you keep in a savings account is backed by the FDIC. This makes it a safer bet than investing your money for those who are worried about losing it.
Account minimums are usually low, but if you choose a brick-and-mortar bank, your interest rate will likely be low as well. However, some offer better rates to customers who keep lots of cash in their account or open multiple accounts at the same bank.
Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Open Account for SoFi Checking and Savings
On SoFi's Secure Website.
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
up to 3.80%²
Rate info
You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
|
New customers can earn up to a $300 bonus with qualifying direct deposits!¹
|
Open Account for SoFi Checking and Savings
On SoFi's Secure Website. |
Open Account for CIT Platinum Savings
On CIT's Secure Website.
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
4.10% APY for balances of $5,000 or more
Rate info
4.10% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $100 to open account, $5,000+ for max APY
|
Earn a bonus of at least $225 after a one-time deposit of $25,000+.
Transfer a one-time deposit of $25,000-$49,999.99 for a bonus of $225. Transfer a one-time deposit of $50,000+ for a bonus of $300. Account must be opened with code PS2025 while this promotion lasts, and funded within 30 days. Bonus will be fulfilled within 60 days from the funding date. There is no period of time where the customer will be required to maintain the funds. Account must be open when bonus is credited. One bonus per account and primary customer. Bonus will be credited into the Platinum Savings Account that fulfills the funding requirement. Funding can be deposited all at once or incrementally.
|
Open Account for CIT Platinum Savings
On CIT's Secure Website. |
Open Account for American Express® High Yield Savings Account
On American Express's Secure Website.
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
3.70%
Rate info
3.70% annual percentage yield as of April 27, 2025. Terms apply.
Min. to earn: $0
|
N/A
|
Open Account for American Express® High Yield Savings Account
On American Express's Secure Website. |
SoFi disclosure:
¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking#1.
² SoFi members who enroll in SoFi Plus with Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi Plus members are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.
³ We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.
⁴ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations.
Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.
⁵ We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
⁶ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
⁷ Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the“30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage.
Checking accounts are designed for daily spending. They keep your money easily accessible, and most include check-writing capabilities, debit cards, and online access. If you choose a brick-and-mortar bank or credit union, you can also visit a branch to deposit or withdraw money.
Checking accounts don't usually offer interest and when they do, it's not as high as what you can get with most other account types. Some checking accounts even charge fees, which could cost you money if you're unable to waive them.
Money you put in a checking account is backed by the Federal Deposit Insurance Corporation (FDIC), so it's protected up to $250,000 per person per bank in the event of bank failure.
Read More: Safest Banks in the U.S.
We recommend comparing checking accounts to make sure you're getting the best fit for you. Here's a list of our favorite accounts.
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Open Account for Discover® Cashback Debit
On Discover Bank's Secure Website.
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
0%
Min. to earn: N/A
|
Earn 1% cash back on up to $3,000 in debit card purchases each month (see details when you click 'Open Account')
|
Open Account for Discover® Cashback Debit
On Discover Bank's Secure Website. |
Open Account for Quontic High Interest Checking
On Quontic's Secure Website.
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
up to 1.10%
Min. to earn: $1
|
High APY when you complete 10 or more qualifying debit card purchases each month
|
Open Account for Quontic High Interest Checking
On Quontic's Secure Website. |
10 debit card point of sale transactions of $10 or more per statement cycle required to earn the maximum APY. If the qualifying activity requirement is not fulfilled, the interest rate paid on the entire balance will be 0.01% APY.
High-yield bank accounts are usually offered by online banks. They don't have branches to maintain, so they can offer customers better rates and fewer fees. Most online banks offer checking and savings accounts, and these are backed by the FDIC.
Accessing cash can be a bit of a pain if your account doesn't include an ATM card and a fee-free ATM network. You'll have to transfer funds between accounts -- and possibly between banks-- but it is doable. Big brick-and-mortar banks often offer large ATM networks.
Money market accounts are a hybrid of checking and savings accounts. They usually offer higher rates than savings accounts, plus multiple ways to access cash (like checking accounts do). But you're limited to six free withdrawals per month.
Money market accounts are a little less common than checking or savings accounts and they often have higher minimum deposit requirements. But if you can meet these requirements, you'll earn a decent interest rate, plus the security of FDIC insurance.
Money market funds are offered by brokers and mutual fund companies. These funds invest in highly liquid securities like certificates of deposit (CDs) and government securities, discussed below.
Your money isn't FDIC insured if you choose a money market fund, but you'll still have quick access to your cash when you need it via an ATM card or a check. You may also be able to earn a greater return on your savings than you could with any of the accounts listed above.
Certificates of deposit (CDs) are another type of FDIC-insured bank account that offers a high annual percentage yield (APY) in exchange for locking up your funds. CDs have terms, usually ranging from about six months to five years. When you open one, you're agreeing not to touch your cash for the term in exchange for a high interest rate.
If you withdraw your funds before the maturity date, you'll pay a penalty. The penalty amount depends on your CD and when you make the withdrawal. That makes these accounts a poor choice for anyone who thinks they may have to cash out early.
| Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
|---|---|---|---|---|
Discover® Bank CD
Member FDIC.
Open Account for Discover® Bank CD
On Discover Bank's Secure Website. |
APY:
4.00%
|
Term:
1 Year
|
Min. Deposit:
$0
|
Open Account for Discover® Bank CD
On Discover Bank's Secure Website. |
|
APY:
4.00%
|
Term:
10 Months
|
Min. Deposit:
$500
|
Open Account for LendingClub CD
On LendingClub's Secure Website. |
|
|
APY:
4.30%
|
Term:
6 Months
|
Min. Deposit:
$1
|
Open Account for
On Secure Website. |
Treasuries are backed by the full faith and credit of the U.S. government. Treasury bills typically mature in less than a year, while Treasury notes often take between two and 10 years to mature. They're considered extremely safe, and you can buy them commission-free online. They're also exempt from state and local taxes.
But you may be able to earn a higher return with some of the other options listed here. Also, like most bonds, if you need to withdraw your funds before the maturity date, you may not get your full investment back.
I bonds are a special type of bond that's designed to protect your investment against inflation. You can purchase them in increments ranging from $50 to $10,000 and buy them directly online without paying a commission fee.
An I bond is also exempt from state and local taxes and might be tax-free if you use the money for post-secondary education expenses. If you do owe taxes on your earnings, you may defer them for up to 30 years. But you must make sure to hold your I bond for at least five years. Selling it earlier results in a penalty.
Municipal bonds are issued by state and local governments. Like all bonds, they're essentially debt. The governments take this money to use on public works and pay you back with interest. While they're not as safe as U.S. government bonds, municipal bonds are still considered low risk, and they're exempt from federal taxes (and possibly state and local taxes).
Unlike U.S. government securities, municipal bonds may charge a commission fee. You also may not earn as much with these as you could with some of the other options on this list, especially if you sell your bond before its maturity date.
Corporate bonds are debts issued by companies. Bonds from more creditworthy companies are generally considered safer, but you may earn smaller returns. Meanwhile, bonds from less creditworthy companies could earn you bigger returns, though there's a greater risk of loss.
You'll likely have to pay a commission to purchase a corporate bond, and selling yours early could cost you money.
Bond funds are mutual funds that pool the money of many investors to purchase a variety of bonds. They help you quickly diversify your investments, which can better protect you against loss. But they're a little less predictable than some of the other investments listed here because the share price and yield can fluctuate.
Mutual funds also charge an annual fee known as an expense ratio, which eats up some of your profits. You may pay a commission fee, known as a load, as well.
You're free to spread your cash out over several accounts detailed above. Remember, what's right for you now may not be right for you later on, so periodically review where to park your cash. Compare the fees and returns at different types of bank accounts or investments, as these can change over time.
Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Motley Fool Money's top savings account picks can earn you more than 10x the national average savings account rate.
Anything insured by the government (FDIC insured) is considered very safe, up to the insured amount. Some accounts are FDIC insured up to $250,000 per depositor, per bank, per account type. You can check if your bank offers FDIC insurance on the FDIC government website.
To ensure your big cash stockpile is safe and growing, you can do a couple things:
Keep cash you may need tomorrow in a checking account or somewhere easily accessible.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page. APYs are subject to change at any time without notice.
