4 Safe Ways to Earn 4%+ on Your Retirement Savings
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Not all high returns come with high risk.
Sure, stock markets swing and bond values can drop. But when it comes to your retirement savings -- cash you can't afford to lose -- you can still earn a solid return without the stress.
Here are several ultra-safe savings tools that are paying 4.00% APY or more right now.
1. High-yield savings accounts earn more on your idle cash
Your money should never be sitting still in a low-interest checking account.
Many high-yield savings accounts (HYSAs), especially those offered by online banks, are now paying between 3.80% and 4.30% APY, and some are even higher.
Here's why they're a great option:
- FDIC-insured up to $250,000 per depositor
- Fully liquid (you can deposit and withdraw any time without penalty)
- Usually no monthly fees or minimum balance requirements
In my opinion, everyone should have a HYSA for idle cash. Doesn't matter if you're storing $1,000 or $100,000, your money should be earning the highest interest rate possible.
Right now, Barclays Tiered Savings is a strong option. You can earn 3.90% APY on balances under $250,000 with no minimums and no fees. Read our full review here to see if it's a good fit for you.
Barclays Tiered Savings
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- Competitive APY
- No monthly account fee
- Unlimited number of external transfers (up to daily transaction limits)
- FDIC insured
- No minimum deposit to open an account
- Balance requirement for maximum APY
- No ATM access
- No wire transfers (inbound or outbound)
- No branch access; online only
Barclays Tiered Savings rewards savers with a tiered APY structure, offering higher rates as your balance grows. No monthly fees and no minimum balance to open mean it's accessible to everyone, while unlimited transfers and withdrawals let you manage your savings your way. And now, you can take advantage of a special offer $200 bonus on top of your savings growth when you open a new account and deposit $30,000 or more. Offer ends Dec. 31, 2025. Terms apply.
2. Certificates of deposit let you lock in rates
If you won't need access to your money right away, a certificate of deposit (CD) can guarantee a fixed return over a set period.
Many banks are still offering CDs in the 4.00% APY range, depending on the length of the term. But with the recent Fed rate cuts (and more on the horizon), now might be the time to act.
How CDs work:
- Choose a term (often between 6 months and 5 years)
- Deposit a lump sum at a fixed rate
- Receive your deposit plus interest at maturity
Let's say you put $10,000 into a 9-month CD earning 4.10% APY. You'd earn about $306 in guaranteed interest, with no market risk and no surprises.
CDs are typically FDIC-insured up to $250,000, so they're just as safe as savings accounts -- just with a time lock.
3. Fixed annuities offer guaranteed long-term returns
If you're thinking about retirement income and want steady, hands-off growth, a fixed deferred annuity could be worth a look.
These are insurance contracts (not bank accounts) that work a lot like CDs. You invest a lump sum, earn a fixed rate, and get your money back -- plus interest -- after a few years.
Some providers are offering fixed annuity rates in the 4% to 5% range for terms between three and five years.
Here's what to know:
- Not FDIC-insured, but backed by the insurer's financial strength
- Early withdrawals usually come with penalties
- Ask whether the policy includes a death benefit for your beneficiaries
- Be aware of potential broker commissions or fees
For people looking to supplement retirement income in a predictable way, a fixed deferred annuity can be a solid, low-volatility option.
4. Treasury bills (T-bills) are tax-smart and government-backed
U.S. Treasury bills are short-term government securities that you can buy for terms as short as 4 weeks or as long as one year. They're considered one of the safest places to park your money.
Here's why T-bills stand out:
- Backed by the U.S. government (as safe as it gets)
- Interest is exempt from state and local taxes
- Sold at a discount -- your interest is built in upfront
At the time of writing, yields on T-bills fall in the 3.50% to 4.00% range, depending on the term and the latest auction.
You can buy them through TreasuryDirect.gov with just a few clicks.
For anyone in a high-tax state, the tax savings alone can make T-bills a better after-tax return than a typical savings account.
Safety and growth don't have to be opposites
Just because you're playing it safe doesn't mean you have to settle for microscopic returns.
Today's retirement savers have real options to earn 4.00% or more without taking on major risk.
The most no-brainer move of all is simply keeping your idle cash in a high-yield savings account. It's flexible, secure, and pays you far more than any other regular bank account.
Explore today's best savings options and start earning more on your safe money.
Our Research Expert
Joel O’Leary is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, mortgages, and other personal finance topics. Joel has been writing about personal finance since 2018, previously leading editorial content for the How To Money podcast and serving as a resident writer at Budgets Are Sexy. He bought his first rental property at age 18, funding the down payment with savings from his high school job at McDonald’s -- a testament to his lifelong passion for smart money decisions. His work aims to make personal finance accessible and actionable for everyday readers. When he’s not writing, Joel enjoys surfing and spending time with his family.