Safe Havens for $5K, $10K, and $25K in Today's Uncertain Market
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I'm absolutely loving what's happened inside my brokerage account the past couple years. Markets are sitting at all-time highs, and honestly, it still blows my mind when I log in to check my balances!
But part of me can't help wondering if things have been too good lately. And maybe it's smart for me to keep a little extra cash on the sidelines for a bit.
Here are four places I'm considering to keep some cash safe while still earning a decent APY.
1. A high-yield savings account (HYSA)
HYSAs are the easiest place to stash cash for short periods. You get FDIC insurance, no lockups, easy access, and a handful of accounts offer rates above 4.00% APY right now.
Here's what a 4.00% APY would earn over six months in an HYSA, at different cash levels:
| Balance | 6-Month Interest |
|---|---|
| $5,000 | $99 |
| $10,000 | $198 |
| $25,000 | $495 |
That's decent, easy interest with zero commitments.
I already keep a hefty emergency fund in my HYSA. So it would be easy for me to beef up that balance a bit to keep more cash on the sidelines instead of investing everything.
If you want a single recommendation, the SoFi Checking and Savings account (Member FDIC) is earning attention for its high annual percentage yield (APY), no monthly fees, and smooth, all-in-one app experience. Here's everything you need to know.
SoFi Checking and Savings
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- Competitive APY on both Savings and Checking
- No monthly account fee
- Welcome bonus up to $300 (direct deposit required)
- ATM access
- Unlimited number of external transfers (up to daily transaction limits)
- FDIC insured (up to $3M with opt-in to SoFi Insured Deposit Program)
- Early access to direct deposits
- Tools to help you track savings goals
- Combo account only; no stand-alone savings or checking
- Maximum Savings APY requires direct deposit
- No branch access; online only
- Overdraft protection requires monthly direct deposit minimum
For those who plan to set up direct deposit with their new account, we think SoFi Checking and Savings (Member FDIC) is hard to beat. Not only does this savings account offer a strong APY, but the linked checking account earns an above-average rate, too -- which is a rare perk. Plus, new customers earn a bonus of up to $300 with eligible direct deposit. Frankly, it's the kind of combo that could make it worthwhile to switch banking relationships.
2. Short-term certificates of deposit (CDs)
Since the Fed has already started cutting rates, I've been thinking a short-term CD might actually be a better fit for some of my cash.
Locking in a solid rate for 6-12 months guarantees that return won't drift lower while everything else adjusts.
Here are some of the strongest short-term CD rates available right now:
- 6-month CDs: 4.10% APY
- 9-month CDs: 4.10% APY
- 12-month CDs: 4.05% APY
The trade-off with locking in an APY and earning guaranteed interest is that your cash is locked up during the term.
But 6-12 months isn't that long, and if a killer opportunity pops up mid-term it might be worth paying the early withdrawal penalty to access the cash.
3. Treasury bills (T-bills)
T-bills are one of the safest investments on the planet, because they're backed by the U.S. government. You can buy them in terms ranging anywhere from 4 weeks up to 52 weeks.
Current yields are hovering around the 3.60%-4.00% range, depending on the term and auction.
If you put $10,000 into a 26-week T-bill yielding 3.80%, you'd walk away with roughly $186 in guaranteed interest over six months.
T-bills are pretty simple to buy and manage through TreasuryDirect or a brokerage.
4. Money market funds
Money market funds (MMFs) are basically the "cash parking lot" inside your brokerage account.
They're not bank accounts, so they're not FDIC insured. But they're generally considered low-risk and often yield more than basic savings.
Here are some quick pros and cons:
Pros:
- Higher yields than traditional checking and savings accounts
- Easy access if you already invest through a brokerage
- Great for parking cash between investments
Cons:
- Not FDIC insured
- Yields can move up or down with the market
- Some MMFs have a high expense ratio (eg. 0.50%) which can eat into returns long term
If you already invest through Fidelity, Vanguard, or Schwab, MMFs can be a super convenient way to earn more on idle cash while keeping everything under one roof.
The easiest first step
When the market feels weird (like right now), I like to keep a bit of money on the sidelines.
My first step is always putting cash in my high-yield savings account. It's the best blend of safety, flexibility, and APY without any lock-ins or headaches.
Once the money is in there, I consider the other options to juice the return a little. CDs, T-bills, and MMFs are all great secondary layers depending on the timeline.
Explore today's best HYSAs 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.