Banks and credit unions offer high-yield savings accounts, which pay higher interest rates than ordinary savings accounts.
Corporations issue bonds to raise funds and pay interest on the principle. When you purchase corporate bond funds, you are investing in debt issued by a variety of firms.
Money market accounts combine the best features of both checking and savings accounts, combining high rates with features such as check-writing and debit card use.
CDs are specialized savings deposits that offer greater interest rates than traditional savings accounts, but investors must commit their assets for a set period of time.
Cash management accounts, which are available from online brokers and robo-advisors, allow investors to combine their personal and investing monies.
Treasury bonds, notes, and bills, like CDs and corporate bonds, are debt products that pay fixed rates in exchange for locked deposits of variable periods.
If you opt out of a no-penalty certificate of deposit before it matures, you will avoid incurring standard bank costs.
Money market mutual funds sound like money market accounts but are different. Money market mutual funds let you invest in municipal or corporate debt instruments.
Peer-to-peer lending services enable consumers to lend money to other individuals or small businesses online, producing better returns than traditional bank investments.
Municipal bonds issued by local governments, towns, or counties to finance public projects such as schools, roadways, and water systems are known as short-term municipal bonds.