I Analyze Bank Accounts for a Living -- Here's Exactly What I'd Do With $5,000 Right Now

You can do a lot of things with $5,000.

You could splurge on a weekend in Cabo, grab those new Taylor Swift tickets, or finally fix the weird noise your car's been making.

But if you're looking to make your money work a little harder, here's how I'd put that $5,000 to work right now.

For accessibility: Park it in a high-yield savings account

If this $5,000 is your emergency fund or money you might need on short notice, you want easy access above all else. That's where a high-yield savings account (HYSA) shines.

Many of the best online banks are still paying around 4.00% APY as of October 2025. Your balance stays liquid, FDIC-insured, and available anytime, plus unlike investing, there's no market risk or waiting period to get it back.

That's hundreds of dollars more per year than what you'd earn from a big-bank savings account still paying 0.01%.

See today's best high-yield savings accounts and compare rates here.

For higher yield: Lock some into a short-term CD

If you don't need the money for at least 6 to 18 months, consider a certificate of deposit (CD). These let you lock in a guaranteed interest rate for a set period of time, which is perfect if you think rates are about to drop.

Top CDs right now are still paying above 4.00% APY for short terms, and since the Federal Reserve might cut rates again soon, this could be one of your last chances to grab those yields.

The trade-off is you can't touch the money until the CD matures, or you'll face an early withdrawal penalty. Still, for funds you won't need right away, it's an easy, risk-free way to earn more.

Compare top CD rates here before rates get cut again.

For flexibility: Do both

You don't have to choose one or the other. A split strategy gives you liquidity and higher returns:

• $3,000 in an HYSA: easy access and still earning strong daily interest
• $2,000 in a short-term CD: locked in for a better guaranteed rate

That blend lets you cover surprise expenses while still earning more than 4.00% on the rest of your cash.

Don't let $5,000 sit idle

Leaving money in a 0.01% checking account is like letting your savings collect dust. With interest rates still near decade-high levels. this is the perfect moment to act.

Even earning 4.00% on $5,000 means roughly $200 a year in passive income. No stocks, no crypto, no risk -- just smarter banking.

If you've been waiting for the "right time" to open a high-yield account, this is it.