With recent interest rate cuts from the Federal Reserve, Americans have seen many savings account rates fall. Now, the national average APY for savings accounts ranges between 0.39% to 0.42%, according to the FDIC.

Online savings accounts have turned a few taps on a phone into a full banking relationship, often with higher yields than traditional branches and fewer fees. That convenience comes with a tradeoff: your money now lives behind a digital lock that criminals work hard to pick.

These savings accounts, CDs, Treasuries, and brokerage cash options still offer competitive yields, giving savers a safe way to earn 3–5% on idle cash right now.

Economic conditions are uncertain right now. Interest rates are high, and inflation has been ticking up in recent months. To top it off, the Federal Reserve is poised to cut rates for the first time this year, which could cause a major shift to occur.

Keeping large balances in a savings account feels safe, but over time it can erode value unless surplus cash is given a better job.

Explore the benefits and types of cash investments. These safe, short-term options offer interest returns and are ideal for preserving capital while assessing other opportunities.