Where is the best place to stash your savings? Under your mattress? Savings bonds? Your checking account? Savings account? A certificate of Deposit? With so many choices, it's easy to just take the easiest route, but that can end up costing you money.
It also doesn't help that recent interest rate cuts are making it more difficult to find good rates of return on your money. Nevertheless, this isn't a time to abandon your emergency fund just because the rates are low. Your goal should be to maximize returns while maintaining the liquidity you need.
There are five common places that people use to manage their short-term savings:
- Checking Accounts
- Savings Accounts
- Money Markets
- Certificates of Deposit
- Savings Bonds
Learn more about where you should keep your savings, and check out the primer on U.S. savings bonds to help you make the most of your cash.