Experts: 4 Safest Places To Keep Your Savings

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If you have reached a certain point in your career, you may have a little bit of extra money set aside. While you know that storing your savings in the freezer is not the best idea, you may not be too sure where you should keep it to get the biggest bang for your buck.

We reached out to financial experts nationwide to find out the safest (and smartest) places to keep your savings. We came up with four tried and true methods for protecting your money and maybe even watching it grow.

Certificate of Deposit (CD)

If you have some extra money that you won’t need in the next few months, a certificate of deposit can be a great option for reliable earnings, especially right now with interest rates soaring.

“A great thing about CD accounts is that your rate is locked in,” said Morgan Gray, SVP, Head of Bask Bank and Consumer Segmentation. “When rates are high, as they are right now, you are guaranteed that interest rate through the length of your CD term. So, no matter what the rate environment looks like over the course of that term – six months, a year, or longer – you’re still going to earn the rate you did when the account was opened.”

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Bask Bank’s CDs offer some of the highest rates available, with APYs (annual percentage yields) ranging from to depending on your preferred term length. You can choose from four different term lengths — from six to 24 months — so you can customize your CD to fit your financial situation. All Bask Bank CDs come with APYs well above the national average. For example, Bask Bank’s six-month CD has a APY*, while the national average is 0.65%, according to the FDIC. All Bask Bank CD accounts require a $1,000 minimum to open.

Gray says another added benefit of choosing a CD is that it encourages responsible saving.

“If you don’t want to be tempted to spend your savings, CDs are a great option to ward off impulse spending and reward you with high interest returns at the end of the account term. By choosing to open a CD account that’s FDIC insured, you’re also adding an additional level of security to your savings.”

The annual percentage yield is effective as of Monday, March 20, 2023. APY is fixed and a $1,000 minimum balance is required. Bask Bank will pay this rate and APY through CD maturity date. Early withdrawal penalty and fees may reduce account earnings. Must fund within 10 days of account opening. Bask Bank is a division of Texas Capital Bank, Member FDIC.

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High-Yield Savings Account

Across the board, many experts agree that a high-yield savings account is one of the best ways to keep your money safe. And they point out that right now is an excellent time to get started.

“Rates are higher right now than they have been in many years and when you open a high yield savings account, you can start earning from these high rates immediately,” Gray said. “Your account begins earning interest the day you fund it.It’s always a good time to start saving — but right now is an especially great time to take advantage of the current rate environment.”

For example, you can get a variable APY with Bask Bank’s Interest Savings Account. Plus, this account charges no monthly fees, so you keep more of your hard-earned money. The Interest Savings Account requires no minimum balance or initial deposit, so you can start small and watch your earnings grow.

Gray points out that a high-yield savings account is an especially appealing option for those who may need immediate access their money in the future.

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“Any saver can benefit from opening a HYSA,” she said. “But if you’re concerned about options that tie your cash up, you could especially benefit from a high-yield savings account as it keeps your cash accessible 24/7. Your money will continue to earn interest as long as it is in the account, but if you need that money tomorrow, you can get it out right away.”

The annual percentage yield is effective as of Monday, March 20, 2023. Rate is variable and subject to change after account opening. No monthly account fees or minimum deposit required. Must fund within 15 days of account opening. Bask Bank is a division of Texas Capital Bank, Member FDIC.

Money Market Account

“Money market accounts are a type of savings account that offers a higher interest rate than traditional savings accounts and can be a good option for keeping your savings safe,” said Andrew Lokenauth, a personal finance expert. “They often have higher minimum balance requirements than other savings accounts, and they may also have limited check-writing capabilities. Money market accounts are FDIC-insured up to $250,000.”

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“Money market accounts are more flexible than the average traditional savings account,” said Gabriel Lalonde, president of MDL Financial Group. “They offer a higher interest rate than traditional savings accounts, and they work essentially as a hybrid deposit account with check-writing and debit card privileges. They are FDIC-insured, meaning that the government backs your money.”

Treasury Securities

“U.S. Treasury securities, such as Treasury bills, notes and bonds, are considered to be among the safest investments because they are backed by the full faith and credit of the U.S. government,” Boothe said. 

Lokenauth added, “They are considered to be a very safe investment, as they are backed by the full faith and credit of the U.S. government. However, they do not offer a high rate of return, as they are meant to be a low-risk investment.”

Bask Bank is a division of Texas Capital Bank. Member FDIC. The sum of your total deposits with (i) Bask Bank and (ii) Texas Capital Bank are insured up to $250,000. Additional coverage may be available depending on how your assets are held.

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