Core Insights - The article discusses the benefits and considerations of different types of Certificates of Deposit (CDs) in a declining interest rate environment, emphasizing the importance of choosing the right term based on individual financial needs [2][3]. Short-term CDs - Short-term CDs typically have terms of up to one year, making them suitable for funds needed in the near future, such as vacations or home renovations [4]. - As of January 22, 2026, the average one-year CD earns an APY of 1.9%, with potential for better rates available [4]. - Pros include relatively quick access to funds, reducing the likelihood of early withdrawal penalties [5]. - Cons include potentially lower rates compared to longer-term CDs and less accessibility than liquid savings accounts [10]. Midrange CDs - Midrange CDs have terms greater than one year and up to three years, often used for saving for significant life events [6]. - The average APY for a two-year CD is 1.7% as of January 22, 2026, with better rates available through comparison shopping [6]. - Pros include the potential for higher rates than short-term CDs [7]. - Cons involve the challenge of locking up funds for an extended period, which may be difficult due to unforeseen emergencies [8]. Long-term CDs - Long-term CDs range from three to five years and are ideal for significant future expenses, such as down payments on homes [11]. - The national average APY for a five-year CD is 1.68% as of January 22, 2026, with opportunities to find better rates [11]. - Pros include the ability to secure a high rate for an extended period, even if market rates decline [12].

Core Insights - Current cash management options are providing competitive yields, with rates ranging from low-3% to around 5%, allowing savers to earn meaningful returns without market risk [3][9] - A comprehensive chart has been created to compare the best-paying options across various cash categories, including high-yield savings accounts, CDs, brokerage cash options, and U.S. Treasuries [4][12] - The article emphasizes the importance of selecting the right account to maximize earnings on liquid savings, highlighting potential earnings for different deposit amounts [7][9] Savings Accounts and CDs - High-yield savings accounts and CDs are among the top options for earning competitive yields, with the best CDs allowing for locking in high rates for a specified period [4][10] - The article provides a breakdown of potential earnings for different balances over six months, illustrating how much interest can be earned at various annual percentage yields (APYs) [8][9] Brokerage and Treasury Options - Brokerage cash options and U.S. Treasuries are also highlighted as viable alternatives for balancing return, flexibility, and stability [4][11] - Treasury securities, including T-bills, notes, and bonds, offer interest through maturity and can be purchased directly or traded on the secondary market [14][15] Current Rates Overview - The article includes a summary of the top nationally available APYs from banks and credit unions, as well as rates from brokerage and robo-advisor products [13][15] - It notes that the yield on money market funds fluctuates daily, while cash management account rates can be adjusted at any time [14]

Core Insights - The average savings account rate serves as a benchmark but should not be the rate consumers settle for, as higher yields are available through high-yield savings accounts [1] - The national average savings account yield is currently 0.62 percent APY, while top high-yield savings accounts offer rates exceeding 4 percent APY, which is over six times the national average [2] National Average Savings Account Interest Rates - As of December 23, 2025, the national average savings account interest rate is 0.62 percent APY, based on a survey of over 500 banks and credit unions [2][3] - High-yield savings accounts are available that provide significantly higher returns, with some offering rates above 4 percent APY [2] Interest Rates for Linked Checking and Savings - Linking a savings account with a checking account can yield higher interest rates, often referred to as relationship rates, which are more common among traditional banks [4] - U.S. Bank offers higher APYs for customers who pair a qualifying checking account with a Bank Smartly savings account, with rates increasing based on account balances [5][8] Comparison of Online Banks and Traditional Banks - Online banks typically offer lower minimum balance requirements and higher APYs compared to traditional brick-and-mortar banks, which may charge monthly fees [7] - Many online banks have minimum opening requirements of $100 or less and provide high APYs on all balances, making them a competitive option for savers [5][7]

Core Insights - Money market accounts (MMAs) offer higher interest rates compared to traditional savings accounts, along with liquidity and flexibility, making them suitable for long-term savings that may be accessed for purchases or bills [1] Interest Rates - The national average interest rate for MMAs is currently 0.59%, while the best rates can exceed 4% APY, similar to high-yield savings accounts [3] - By late 2023, many MMAs were offering rates of 4.00% or higher, with some accounts in 2024 providing rates above 5% APY [7] - The highest MMA rate available today is 4.26% APY [13] Historical Context - MMA rates have fluctuated significantly due to changes in the Federal Reserve's target interest rate, particularly during economic events such as the 2008 financial crisis and the COVID-19 pandemic [4][5][6] - Following the 2008 crisis, MMA rates were low, typically between 0.10% and 0.50%, but began to rise as the economy improved and the Fed increased interest rates [5][6] - The aggressive interest rate hikes initiated by the Fed in 2022 to combat inflation resulted in historically high deposit rates for MMAs [7] Account Features - When selecting an MMA, factors beyond interest rates should be considered, such as minimum balance requirements, fees, and withdrawal limits, which can affect overall value [9] - Some MMAs may require a minimum balance of $5,000 or more to earn the highest rates, and monthly maintenance fees can reduce interest earnings [10] - There are competitive MMAs available without balance requirements or fees, emphasizing the importance of comparing options [10] Insurance and Safety - It is crucial to ensure that the chosen MMA is insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), which protects deposits up to $250,000 per institution, per depositor [11]