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Where Should You Hold Your Cash Right Now: MMAs, CD, Savings, or Cash Reserve?

Investors with money to spare have a special opportunity to make the most of interest rates near to or above 5.00% APY across a range of products, from brokerage cash management accounts or high-yield savings accounts to money market accounts (Mixed martial arts) and certificates of deposit (CDs).

The Federal Reserve has actually treked the federal funds rate 10 times in the last 15 months, bringing it from near 0.00% approximately 5.00% -5.25%. The Fed announced this week that it is stopping briefly rate boosts for the time being, it seems clear that rates aren’t most likely to fall for some time.

During the previous year, interest rates for lots of kinds of accounts that respond to the instructions of the federal funds rate have actually also shot upward, reaching their highest levels in more than 15 years. The concern then ends up being: which account is finest for you and your cost savings today?

A series of rate hikes by the Federal Reserve in the last 15 months has sent out interest rates on cash reserves, CDs, high-yield cost savings, and cash market accounts skyrocketing.Cash reserve accounts might be a great option for financiers currently set up with a brokerage offering competitive interest rates.CDs allow savers to guarantee a set rates of interest over the regard to the certificate, even if more comprehensive rates drop throughout that time.High-yield cost savings accounts provide the versatility to deposit or withdraw cash at any time, although their rates of interest vary over time.Money market accounts are very similar to cost savings accounts, though they also allow account holders to compose checks.

How Do Rates Across Account Types Stack Up?

Top Rates Across Account Types as of June 15, 2023
Account Type Top Interest Rate Provider (Account)
Cash Reserve Account 4.65% APY Robinhood (Robinhood Gold account)
CDs 5.65% APY NASA Federal Credit Union (9-month term CD)
High-Yield Savings Account 5.12% APY CFG Bank
Money Market Account 5.25% APY Brilliant Bank

Since this writing, the highest-yielding account available is a 9-month CD offered by NASA Federal Credit Union, which provides 5.65% APY. The leading high-yield cost savings and money market accounts also provide rates above 5.00%, while the best cash reserve account out of the ones we surveyed is Robinhood’s Gold account, with an APY of 4.65%.

This doesn’t indicate, nevertheless, that all investors must hurry to put their cash into a CD merely since it comes out on top in this ranking. There are necessary differences between these accounts that might make some a much better choice for you offered your financial plans and requirements.

Cash Reserve Accounts May Simplify Financial Dealings.

Though brokerage cash management accounts have the lowest-ranking top yield among the account types noted above, some savers might discover these accounts to be amongst the easiest to manage. If you currently have an account with a brokerage using a competitive rate on a money reserve account, the process for shifting your cash to money reserves might be really straightforward. On the other hand, if you do not have a brokerage account currently you might prefer another choice that offers a greater yield.

Robinhood Gold subscribers presently get the very best yield among cash reserve accounts at 4.65% APY, but also pay a $5 each month cost. Only a little number of brokerages provide similar interest rates on money management accounts, including Wealthfront’s cash management account, which pays 4.55%, and Betterment’s which pays 4.50%.

CDs Allow You to Lock in a Competitive Rate.

A significant advantage of CDs is that they enable savers to lock in a strong rate of interest, ensuring returns at that level for the duration of the certificate’s term. CDs likewise permit the flexibility of a variety of term lengths, from months approximately numerous years. On the other hand, many banks and cooperative credit union will charge a hefty charge for depositors who withdraw money from a CD before the term ends, so these accounts tend to be best for individuals who are comfortable leaving their cash untouched for an extended time.


The highest-yielding CD is presently a 9-month term certificate. The top-paying CDs of other terms provide varying rate of interest.

The best CD rates today vary from 4.77% APY for a 5-year CD up to 5.65% APY for a 9-month CD from NASA Federal Credit Union. Despite the term, the top-paying CDs use rate of interest considerably higher than the nationwide average, so it’s always best to validate that the rate you’re getting is competitive.

High-Yield Savings Accounts Shatter the National Average Rate.

The nationwide typical interest rate for cost savings accounts is a paltry 0.40%, thanks in big part to significant nationwide banks that can use low rate of interest because they do not need to entice financiers to supply deposit money that can be turned around and loaned out. The top high-yield savings accounts supply a rate more than 10 times higher than the national average.

Cost savings accounts provide versatility that CDs do not. You can withdraw your money– or deposit more– as you choose. Many high-yield savings accounts deal transfers in between institutions taking no more than a few days, indicating that the majority of savers find their funds quickly accessible. Nevertheless, savings account rates change regularly and without caution, frequently depending upon how the federal funds rate changes. So a high interest rate now does not provide any defense versus a major drop in yield later on.


When choosing a high-yield savings account, remember of whether a minimum preliminary deposit or a minimum balance is essential to receive the highest interest rate available.

Money Market Accounts Give the Flexibility of Savings, But With Checks.

Money market accounts have mostly ended up being interchangeable with savings accounts, with the primary distinction being that they permit account holders to compose checks while standard cost savings accounts do not. Both types of accounts are good fits for savers who expect to withdraw or deposit money repeatedly. Like savings accounts, MMAs might alter rates at any time, leaving savers exposed to a risk of an unexpected drop in interest rate.

The national typical rate of interest for money market accounts is 0.59%, well below the top-paying MMA rate of 5.25% APY at Brilliant Bank. A total of 10 MMAs presently pay 4.50% APY or better.

Rate Collection Methodology Disclosure.

Every business day, Investopedia tracks the rate information of more than 200 banks and credit unions that offer money market, savings accounts, and CDs to consumers nationwide, and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for cooperative credit union), and the account’s minimum preliminary deposit should not go beyond $25,000.

Banks should be readily available in at least 40 states. And while some credit unions need you to donate to a particular charity or association to end up being a member if you don’t meet other eligibility criteria (e.g., you do not live in a specific location or work in a certain type of task), we leave out cooperative credit union whose donation requirement is $40 or more. For more about how we select the very best rates, read our full method.


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