Money Management

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A lot of people think certificates of deposit (CDs) are one of the best places to park your cash — especially since their interest rates spiked last year. CD rates have been declining for months now, but you can still find short-term CDs paying up to 4.50%. For a guaranteed return, that’s hard to beat.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. Still, there are probably better places for your money. You can get similar returns without locking up your cash — or higher returns if you take a little risk.The problem with CDsAt first glance, CDs seem great: You get a guaranteed return, there’s no risk of losses, and your money is FDIC insured.However, CDs are sort of an unhappy medium between high-yield savings accounts and high-growth investments like stocks. For me, there just isn’t a place for CDs in my financial plan.Here’s why.High-yield savings accounts: More flexibility and a similar APYA high-yield savings account (HYSA) is a great alternative to a CD. Right now, you can find HYSAs with annual percentage yields (APYs) of about 4.00% or more. There are even some HYSAs that pay 4.50% if you can meet certain requirements, like a minimum balance or direct deposit amount.So you can get about the same interest rate that’s offered by the best CDs, and you get the flexibility and convenience of a savings account:You can deposit and withdraw money whenever you want.You can quickly transfer money to other accounts.You can simply deposit cash and leave it, whereas CDs require some work and decision-making when they mature.Savings accounts make it easy to save money consistently. And the ease of withdrawing money quickly makes them perfect for your emergency fund.The only advantage of CDs is that their interest rates are fixed, while savings account APYs can change at any time. However, given how similar their rates are right now, you’re not likely to gain much by locking your money up in a CD.Ready to start earning 10 times the national average rate on your savings? Check out our list of the best high-yield savings accounts and open an account today.The stock market: More risk, but more rewardInvesting in stocks is a much better way to grow your wealth over time. And most Americans need a high return on investment to save enough for retirement.Historically, the stock market has returned about 10% per year on average, as measured by the S&P 500 Index. Yes, stocks lose value sometimes, but if you buy and hold them for decades, then you stand a good chance of making much higher returns than you could through a CD.Here’s a quick comparison of how much $10,000 could grow over time.YearsCD With a 4.50% APYStock Market Portfolio Earning 7% per Year5$12,462$14,02610$15,530$19,67220$24,117$38,69730$37,453$76,123Data source: Author’s calculations.The longer you stay invested, the more you benefit from the stock market’s higher growth.Of course, we don’t know how the stock market will perform. We don’t know what future CD rates will be, either. But if history is any guide, the stock market is a much better long-term bet than CDs.Ready to get in on the stock market’s growth? Check out our list of the best stock brokers and open a new account to start investing today.There’s no room for CDs in my financial planI keep my emergency savings in a savings account so I can tap them whenever I need to. The rest of my income is invested in high-growth assets (mostly stocks) so I’ll someday have plenty of money to retire on. As a result, I’m on track to retire with more annual income than I earn now — or perhaps to retire early.CDs offer less flexibility than savings accounts and lower returns than stocks. I don’t need an account that might pay a tiny bit more interest if I keep my cash locked up for months or years. After all, I keep as little money in cash as possible, because I’m investing for growth — and you may want to do the same.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

A lot of people think certificates of deposit (CDs) are one of the best places to park your cash — especially since their interest rates spiked last year. CD rates have been declining for months now, but you can still find short-term CDs paying up to 4.50%. For a guaranteed return, that’s hard to beat.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Still, there are probably better places for your money. You can get similar returns without locking up your cash — or higher returns if you take a little risk.

The problem with CDs

At first glance, CDs seem great: You get a guaranteed return, there’s no risk of losses, and your money is FDIC insured.

However, CDs are sort of an unhappy medium between high-yield savings accounts and high-growth investments like stocks. For me, there just isn’t a place for CDs in my financial plan.

Here’s why.

High-yield savings accounts: More flexibility and a similar APY

A high-yield savings account (HYSA) is a great alternative to a CD. Right now, you can find HYSAs with annual percentage yields (APYs) of about 4.00% or more. There are even some HYSAs that pay 4.50% if you can meet certain requirements, like a minimum balance or direct deposit amount.

So you can get about the same interest rate that’s offered by the best CDs, and you get the flexibility and convenience of a savings account:

• You can deposit and withdraw money whenever you want.
• You can quickly transfer money to other accounts.
• You can simply deposit cash and leave it, whereas CDs require some work and decision-making when they mature.

Savings accounts make it easy to save money consistently. And the ease of withdrawing money quickly makes them perfect for your emergency fund.

The only advantage of CDs is that their interest rates are fixed, while savings account APYs can change at any time. However, given how similar their rates are right now, you’re not likely to gain much by locking your money up in a CD.

Ready to start earning 10 times the national average rate on your savings? Check out our list of the best high-yield savings accounts and open an account today.

The stock market: More risk, but more reward

Investing in stocks is a much better way to grow your wealth over time. And most Americans need a high return on investment to save enough for retirement.

Historically, the stock market has returned about 10% per year on average, as measured by the S&P 500 Index. Yes, stocks lose value sometimes, but if you buy and hold them for decades, then you stand a good chance of making much higher returns than you could through a CD.

Here’s a quick comparison of how much $10,000 could grow over time.

The longer you stay invested, the more you benefit from the stock market’s higher growth.

Of course, we don’t know how the stock market will perform. We don’t know what future CD rates will be, either. But if history is any guide, the stock market is a much better long-term bet than CDs.

Ready to get in on the stock market’s growth? Check out our list of the best stock brokers and open a new account to start investing today.

There’s no room for CDs in my financial plan

I keep my emergency savings in a savings account so I can tap them whenever I need to. The rest of my income is invested in high-growth assets (mostly stocks) so I’ll someday have plenty of money to retire on. As a result, I’m on track to retire with more annual income than I earn now — or perhaps to retire early.

CDs offer less flexibility than savings accounts and lower returns than stocks. I don’t need an account that might pay a tiny bit more interest if I keep my cash locked up for months or years. After all, I keep as little money in cash as possible, because I’m investing for growth — and you may want to do the same.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Treasury bonds, aka T-bonds, are long-term investments sold by the U.S. government. You buy them, get interest payments every six months for 20 or 30 years, then get the face value of the bonds back when they mature.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. Most recently, 20-year T-bonds offered an interest rate of 4.750%, while 30-year T-bonds paid 4.625%. That’s a higher rate than you can get from a savings account, certificate of deposit, or money market account.Let’s look at how much $10,000 could earn if invested in T-bonds, as well as whether you should buy T-bonds now.How much would $10,000 earn in T-bonds?First, a little context on how T-bonds work. If you’re unfamiliar with T-bonds, I promise this is worth it.The interest rate on T-bonds is fixed, but the price of T-bonds changes based on demand. That means your return on investment, or yield, depends partly on how much you pay for your T-bonds. The less you pay, the higher your yield, because you’re getting the same interest payment for a lower price.To keep things simple, let’s say you bought your bonds at face value, which is basically the “sticker price” set by the government. The interest payments you get twice per year are based on the face value, and the face value is also the amount you’ll be paid once the bond matures.New T-bonds are only issued once every few months, and every batch may have a different interest rate than the last one. We’ll assume you purchased them during the most recent auction, in mid-February.Now, with that out of the way…Just tell us the earnings!20-year bonds maturing in February 2045 pay an interest rate of 4.750%. If you had bought $10,000 worth of these, you’d earn $9,500 in interest over 20 years.The 30-year bonds maturing in February 2055 pay an interest rate of 4.625%. A $10,000 investment would earn you $13,875 in interest over 30 years.And if you’d bought these bonds at face value, your initial investment of $10,000 would be repaid in full when the bonds matured.Want to earn an interest rate of up to 4.50% with no hassle? Check out our list of the best high-yield savings accounts.Should you buy T-bonds now?T-bonds are best for people who want to safeguard their investment and earn guaranteed income for a very long time. For example, people who are in or near retirement may want to invest part of their portfolio in T-bonds.Recently issued T-bonds have paid just about the highest interest rates we’ve seen since 2008. If you want to lock in a high interest rate for decades, now might be the time.There are several ways to buy T-bonds:At auction: You can purchase T-bonds at auction, either directly from the government at TreasuryDirect.gov or through a broker. The next batch of new 20- and 30-year T-bonds will be auctioned off in May. We don’t know what the interest rates will be yet, but they likely won’t change by more than 50 basis points.On the secondary market: You can purchase existing T-bonds from other investors at any time through a broker. However, prices go up and down, so you may not get the best deal. For example, 20-year T-bonds maturing in February 2045 are now selling at a premium, so you’ll get less bang for your buck.Through an exchange-traded fund (ETF): There are ETFs that regularly purchase new Treasury bonds. You can buy a share of these ETFs the same way you’d buy a stock, and then you own a piece of all those bonds (and get your share of the interest payments). This is the easiest way to invest in T-bonds, though you can’t pick and choose which bonds you buy. ETFs charge investors a small fee, too.Many stock brokers allow you to buy T-bonds at auction or on the secondary market, including Fidelity, Charles Schwab, and E*TRADE from Morgan Stanley, to name a few. Even more brokers allow you to purchase T-bond ETFs. To get started, check out our list of the best stock brokers and open a new brokerage account today.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Charles Schwab is an advertising partner of Motley Fool Money. James McClenathen has no position in any of the stocks mentioned. The Motley Fool recommends Charles Schwab and recommends the following options: short March 2025 $80 calls on Charles Schwab. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Treasury bonds, aka T-bonds, are long-term investments sold by the U.S. government. You buy them, get interest payments every six months for 20 or 30 years, then get the face value of the bonds back when they mature.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Most recently, 20-year T-bonds offered an interest rate of 4.750%, while 30-year T-bonds paid 4.625%. That’s a higher rate than you can get from a savings account, certificate of deposit, or money market account.

Let’s look at how much $10,000 could earn if invested in T-bonds, as well as whether you should buy T-bonds now.

How much would $10,000 earn in T-bonds?

First, a little context on how T-bonds work. If you’re unfamiliar with T-bonds, I promise this is worth it.

The interest rate on T-bonds is fixed, but the price of T-bonds changes based on demand. That means your return on investment, or yield, depends partly on how much you pay for your T-bonds. The less you pay, the higher your yield, because you’re getting the same interest payment for a lower price.

To keep things simple, let’s say you bought your bonds at face value, which is basically the “sticker price” set by the government. The interest payments you get twice per year are based on the face value, and the face value is also the amount you’ll be paid once the bond matures.

New T-bonds are only issued once every few months, and every batch may have a different interest rate than the last one. We’ll assume you purchased them during the most recent auction, in mid-February.

Now, with that out of the way…

Just tell us the earnings!

20-year bonds maturing in February 2045 pay an interest rate of 4.750%. If you had bought $10,000 worth of these, you’d earn $9,500 in interest over 20 years.

The 30-year bonds maturing in February 2055 pay an interest rate of 4.625%. A $10,000 investment would earn you $13,875 in interest over 30 years.

And if you’d bought these bonds at face value, your initial investment of $10,000 would be repaid in full when the bonds matured.

Want to earn an interest rate of up to 4.50% with no hassle? Check out our list of the best high-yield savings accounts.

Should you buy T-bonds now?

T-bonds are best for people who want to safeguard their investment and earn guaranteed income for a very long time. For example, people who are in or near retirement may want to invest part of their portfolio in T-bonds.

Recently issued T-bonds have paid just about the highest interest rates we’ve seen since 2008. If you want to lock in a high interest rate for decades, now might be the time.

There are several ways to buy T-bonds:

• At auction: You can purchase T-bonds at auction, either directly from the government at TreasuryDirect.gov or through a broker. The next batch of new 20- and 30-year T-bonds will be auctioned off in May. We don’t know what the interest rates will be yet, but they likely won’t change by more than 50 basis points.
• On the secondary market: You can purchase existing T-bonds from other investors at any time through a broker. However, prices go up and down, so you may not get the best deal. For example, 20-year T-bonds maturing in February 2045 are now selling at a premium, so you’ll get less bang for your buck.
• Through an exchange-traded fund (ETF): There are ETFs that regularly purchase new Treasury bonds. You can buy a share of these ETFs the same way you’d buy a stock, and then you own a piece of all those bonds (and get your share of the interest payments). This is the easiest way to invest in T-bonds, though you can’t pick and choose which bonds you buy. ETFs charge investors a small fee, too.

Many stock brokers allow you to buy T-bonds at auction or on the secondary market, including Fidelity, Charles Schwab, and E*TRADE from Morgan Stanley, to name a few. Even more brokers allow you to purchase T-bond ETFs. To get started, check out our list of the best stock brokers and open a new brokerage account today.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Charles Schwab is an advertising partner of Motley Fool Money. James McClenathen has no position in any of the stocks mentioned. The Motley Fool recommends Charles Schwab and recommends the following options: short March 2025 $80 calls on Charles Schwab. The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: The Motley Fool/Upsplash
Building an emergency fund can feel overwhelming, especially if you’re starting small. But the truth is, growing a $500 emergency fund into $5,000 isn’t as hard as it seems. With the right strategies and a bit of discipline, you can hit that goal faster than you think. Here’s how to make it happen.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. 1. Automate your savings into a high-yield savings accountOne of the easiest ways to build your emergency fund is to automate your savings. Set up a recurring transfer from your checking account to a high-yield savings account each payday. Even small amounts — like $25 per week — can add up quickly. Over a year, that’s $1,300 saved without much effort.High-yield savings accounts can offer up to 10 times the national average savings account APY. That can lead to hundreds or thousands more dollars in your savings account over time. If you’re not sure where to start, check out our list of the best high-yield savings accounts.2. Cut one expense and redirect the savingsTake a look at your spending habits and find one expense you can cut or reduce. Whether it’s a streaming service you barely use or that one auto-ship that you always mean to cancel, redirecting even $50 per month into your emergency fund can speed things up significantly.Adding $50 every month to a high-yield savings account earning a 4.00% APY gives you more than $600 in your account at the end of the year. And after five years of adding just $50 a month to your account, you’ll have an extra $3,326. Find an expense you can live without and stop leaving all this money on the table.3. Take advantage of cash back and rewards credit cardsSome of the best credit cards pay cash back on everyday expenses like groceries, gas, and dining out. Use a rewards credit card for necessary expenses and use your cash back to help pay off your balance. Then just deposit the cash you would have sent to your credit card issuer into your savings account.Some cards even offer welcome bonuses worth hundreds of dollars. That’s a great way to jumpstart your savings goals. Just be sure to use your credit card responsibly. Carrying a balance from month to month will quickly erase any cash back savings you have earned.Earn some extra cash back to jumpstart your savings. Take a look at our list of best credit cards now.4. Set a short-term savings goalSaving $5,000 might feel like a stretch, but breaking it into smaller milestones makes it easier. Start with a goal of saving $1,000 or even just $50 monthly.It will surprise you how quickly your money can grow, and hitting milestones keeps you motivated. After managing to save $1,000 in the bank, suddenly $2,500 seems within reach. You’ll be at $5,000 before you know it.Reaching those short-term savings goals gets easier if you keep your cash in a high-yield savings account. You can earn 10 times the national average APY on your money, while also having the flexibility to access your cash whenever you need it.Ready to grow your emergency fund?With a few simple changes, you can grow your $500 emergency fund into $5,000 faster than you thought possible. The key is to be consistent, take advantage of opportunities to earn extra cash, and make saving a priority.Start today by opening a high-yield savings account, setting up an automatic transfer, or finding a small expense to cut. Your future self will thank you!Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. SoFi disclosure: ¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking#1.We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Building an emergency fund can feel overwhelming, especially if you’re starting small. But the truth is, growing a $500 emergency fund into $5,000 isn’t as hard as it seems. With the right strategies and a bit of discipline, you can hit that goal faster than you think. Here’s how to make it happen.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

1. Automate your savings into a high-yield savings account

One of the easiest ways to build your emergency fund is to automate your savings. Set up a recurring transfer from your checking account to a high-yield savings account each payday. Even small amounts — like $25 per week — can add up quickly. Over a year, that’s $1,300 saved without much effort.

High-yield savings accounts can offer up to 10 times the national average savings account APY. That can lead to hundreds or thousands more dollars in your savings account over time. If you’re not sure where to start, check out our list of the best high-yield savings accounts.

2. Cut one expense and redirect the savings

Take a look at your spending habits and find one expense you can cut or reduce. Whether it’s a streaming service you barely use or that one auto-ship that you always mean to cancel, redirecting even $50 per month into your emergency fund can speed things up significantly.

Adding $50 every month to a high-yield savings account earning a 4.00% APY gives you more than $600 in your account at the end of the year. And after five years of adding just $50 a month to your account, you’ll have an extra $3,326. Find an expense you can live without and stop leaving all this money on the table.

3. Take advantage of cash back and rewards credit cards

Some of the best credit cards pay cash back on everyday expenses like groceries, gas, and dining out. Use a rewards credit card for necessary expenses and use your cash back to help pay off your balance. Then just deposit the cash you would have sent to your credit card issuer into your savings account.

Some cards even offer welcome bonuses worth hundreds of dollars. That’s a great way to jumpstart your savings goals. Just be sure to use your credit card responsibly. Carrying a balance from month to month will quickly erase any cash back savings you have earned.

Earn some extra cash back to jumpstart your savings. Take a look at our list of best credit cards now.

4. Set a short-term savings goal

Saving $5,000 might feel like a stretch, but breaking it into smaller milestones makes it easier. Start with a goal of saving $1,000 or even just $50 monthly.

It will surprise you how quickly your money can grow, and hitting milestones keeps you motivated. After managing to save $1,000 in the bank, suddenly $2,500 seems within reach. You’ll be at $5,000 before you know it.

Ready to grow your emergency fund?

With a few simple changes, you can grow your $500 emergency fund into $5,000 faster than you thought possible. The key is to be consistent, take advantage of opportunities to earn extra cash, and make saving a priority.

Start today by opening a high-yield savings account, setting up an automatic transfer, or finding a small expense to cut. Your future self will thank you!

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

SoFi disclosure:
¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking#1.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] Read More