I have CDs that pay over 4%.

I prefer Treasury I-bonds for money that you know you won’t need for at least a year. (Because that’s how long you have to wait to cash it in). No taxes need to be paid on the interest until it’s cashed in and there is NO state tax due on the interest. In NY that means a lot to investors

CD’s that offer a high interest rate are good too but the high interest earned adds to your adjusted gross income which means more taxes due.

My wife and I just set one up through Synchrony and get 5% interest.

The credit union is now paying just 4 percent for 2-year. My 9-month at the bank pays just over 5. I don’t think it’s terribly low as liquidity and zero risk for these accounts are considerations for me.

A CD will give you a better return but a money market is liquid. If you think you won't need to dip into the fund for a certain amount of time, get a CD. My credit union offers a 12-month CD for an annual percentage yield of as much as 5%. The interest rates on US savings bonds (I Bonds) is 5.27% right now, compounded semi-annually but rates can be adjusted every 6 months, and you can only buy $10K per year. Also, if you cash in before 5 years you lose 3 months of interest. https://www.treasurydirect.gov/savings-bonds/comparing-ee-and-i-bonds/

When you buy a Treasury bill, you can do it for as little as 4 weeks or go for 8 weeks. You can auto-renew and, if you do, change your mind to stop it. They pay more than the banks and credit unions.

Understand how they do it because it's a little confusing. If you buy $1,000 T-bill, then you don't pay $1,000 but $1,000 minus the interest rate but you get $1,000 back at the end. If you renew, each time it renews, they send you a check with the interest. If you have direct deposit set up, then they deposit that interest in your bank account each time it renews.

Remember, if a bank or C.U. fails, the government will back your savings but you may lose the interest and it could take some time to get your money. On the other hand, if the government fails, the money is lost no matter if you have it in a bank or C.U., or in Treasuries as they all depend on government money so why go through a third party that skims off some of the interest so they can make money, too?

Treasury Direct
Recent rates have been 5.49%!

Note that treasury bills and bonds are exempt from state (but not federal) taxes.

Note, if you want to go longer term (like CDs are), look at Treasury Bonds, not bills. Same site.

Money in the bank is dead - not doing anything. I'd rather have it earning something, and I heard these bills/bonds are a good deal.

I’m seeing 3 month and 6 month CDs that are paying over 5% as well. Those might be worth investigating if you don’t mind paying the taxes and don’t mind having your money locked up for a few more months.

I get the specials and then mark the calendar with the renewal date that way they don’t roll over with a lower rate.

Somebody with $90k should find a good advisor to invest in a balanced, diversified portfolio within one’s risk tolerance. It’s the only way the money will keep up with inflation.

For smaller amounts, say under $25k, high interest savings with a required minimum balance, or laddered (staggered maturity dates) CD’s would be a good choice.

An index fund avoids having to pay an adviser.

5.25%.

Banks are not cashing anything with a thousand dollars. You have to fill out a form and send them to Washington DC. CDs are best if you need money fast.