4 Safe Ways to Earn 4%+ on Your Retirement Savings

When it comes to investing, less risk usually means less reward.

But that doesn't mean your safe and secure money should earn next to nothing. Many big banks still pay 0.01% on checking accounts -- and that's unacceptable when there are safe alternatives paying 4.00% APY or more.

There are plenty of low-risk ways to earn a decent return in the 4%-5% range. Here are four options that are as safe as they come.

1. High-yield savings accounts (HYSAs) for liquid cash

One of the easiest -- and safest -- ways to earn 4%+ right now is by switching to a high-yield savings account (HYSA).

Right now the top HYSAs at online banks are paying between 3.80% and 4.20% APY or higher.

Most online high-yield accounts are:

• FDIC-insured up to $250,000 per depositor
• Fully liquid (withdraw and deposit funds anytime without penalty)
• Have low or no fees, and often no minimum balance requirements

In my opinion, everyone should have an HYSA for idle cash. Doesn't matter if you're storing $1,000 or $100,000, your cash should be earning the highest interest rate possible.

2. Certificates of deposit (CDs) to lock in today's top rates

If you don't need immediate access to your money, a certificate of deposit (CD) can lock in today's top rates for a specified term.

You can still find banks offering CDs with rates between 4.00% and 4.50% APY, depending on the term. But these rates could be lowered fairly soon, given the potential Fed rate cuts expected in the coming months.

Here's a quick overview of how CDs work:

• You pick a term (usually between 6 months and 5 years)
• You deposit a lump sum of money, and lock in a fixed interest rate
• At the end of the term, you get back your full deposit plus all the interest

Let's say you invest $10,000 in an 18-month CD earning 4.00% APY. That's about $600 in guaranteed interest, assuming you don't withdraw early. Not bad for a set-it-and-forget-it savings option.

CDs are also usually federally insured, up to $250,000 per account. So your money is safe in these accounts.

Check today's best CD rates and terms here.

3. Fixed deferred annuities for long-term stability

For retirees (or near-retirees) looking for guaranteed income, a fixed annuity might be worth considering.

These are contracts you buy through an insurance company, not a bank. They work kind of like a CD in that you invest a lump sum, get a fixed interest rate, and get your money back several years later.

Right now, some fixed deferred annuities are offering 5% to 6% fixed returns on 3- to 5-year terms.

Important notes:

• Your money is not liquid -- there are penalties for early withdrawal
• Not FDIC-insured, but backed by the insurer's financial strength
• Make sure your annuity has a death benefit, so if something bad happens to you a survivor can be the beneficiary
• Beware of any broker or agent fees when shopping for the right policy

A fixed annuity can be a smart supplement to Social Security or other income, especially for conservative investors.

4. Treasury bills (T-bills) are ultra-safe and free of state and local tax

U.S. Treasury bills (aka T-bills) are short-term government debt. Basically a short-term loan to the government that pays you back with interest.

T-bills are backed by the full faith and credit of the U.S. government, and usually sold in terms ranging from 4 to 52 weeks.

One cool feature is that earnings are exempt from state and local taxes, which can boost your real return. You will, however, need to pay federal tax according to your bracket.

As of this writing, T-bills are yielding in the 3.90% to 4.30% range, depending on the term. You can buy them through TreasuryDirect.gov or in a brokerage account.

Safe doesn't mean low earnings

You don't need to take wild risks to grow your retirement savings. And you don't need to keep cash in a checking account to keep it safe.

There are middle grounds where you can earn decent 4%+ returns and keep your money extremely safe.

Explore today's top savings accounts, and start earning more on your idle cash.