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<\/a><\/figure>\n\n\n\nChecking and Savings Money Market Certificate of Deposit High-Yield Savings Account A Word of Caution When saving, the time frame and purpose of the money matters. Many of these rates are going to drop as the Fed continues to lower interest rates. As that happens, their appeal will go down. You may want to lock in a CD at a higher rate while you can if you don\u2019t need the money for six months or a year. These accounts do well for short-term purposes and goals so that you can earn interest with very little risk. For investment goals and time horizons of 3-5 years, or 10+ years, you\u2019d want to be invested in the markets. Instead of keeping up with inflation, there is an opportunity to beat it and grow your money long-term. As always, our advisors at Smedley Financial would be happy to meet and discuss individual situations.<\/p>\n\n\n\n
<\/strong>Average interest range: 0.01-0.5%. We typically recommend keeping enough to cover monthly expenses. Don\u2019t keep an excess unless your checking or savings account is earning more than 3%.<\/p>\n\n\n\n
<\/strong>Average interest range: 0.50-5%. Not all money markets are the same. The best ones are paying over 4%. You should look for one that earns you at least 3%. These accounts are limited in transactions, so monitor how often you may need this money.<\/p>\n\n\n\n
<\/strong>Average interest range: 1.5%-5%. These rates vary based on the time frame, whether six months, one year, 18 months, etc. Because this money is locked up during the period you hold it, make sure you are being rewarded with 4% or more.<\/p>\n\n\n\n
<\/strong>Average interest range: 4-5%. This is a great option that gives the flexibility and liquidity of a normal savings account but with the rates of a CD or money market. Emergency funds and savings for short-term purchases are perfect for this account.<\/p>\n\n\n\n
<\/strong>Many of these accounts are offered at different banks and credit unions. When researching rates, make sure you know and trust the institution. There are a lot of smaller online and regional banks out there that have fantastic rates. However, they can sometimes be more at risk for bank failures or using bait and switch tactics. They will offer you big rates upfront and then drop them after a few months. Bigger, well-known, established banks or well-run credit unions are typically better in this regard.<\/p>\n\n\n\n