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When you're retired, your investing goals usually shift. It's less about high returns and more about steady income, protection from inflation, and peace of mind.

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The good news is, you don't have to sacrifice growth entirely to protect your nest egg. Thanks to high interest rates, right now you can still get great guaranteed returns from several low-risk investments.

Here are five of the safest investments for retirees that can still earn solid returns -- without the stress.

1. Certificates of deposit (CDs)

The first classic, low-risk option is buying CDs. You start by depositing money for a locked-in period (like 1 year, 3 years, or 5 years). Then in return, you earn a guaranteed interest rate for the duration of the CD's term.

CD accounts are FDIC insured (up to $250,000 per account holder, per bank). So your money is federally protected even if the whole bank fails.

Right now some of the best CD rates are up to 4.25% APY, depending on the term.

Here's a quick example of what you could earn based on a $50,000 investment and different CD terms:

If you're looking for a safe way to preserve capital and still earn interest, CDs are hard to beat.

2. Fixed annuities with no commissions

Not all annuities are created equal. But fixed deferred annuities (with no commissions and a death benefit) can be a smart, safe option for retirees.

They work a lot like CDs. You invest a lump sum, lock in a fixed interest rate for a set number of years (typically three to seven), and then collect the earnings when it matures.

Some fixed annuities offer around 5%-6% annually right now. Not bad for folks who want a predictable return and a safe income stream, but don't need immediate access to the cash.

3. Dividend stock ETFs

Want to stay in the market without the rollercoaster ride? Dividend stock ETFs might be your answer. You can invest directly within your brokerage account.

Dividend funds invest in a diversified group of companies that pay regular dividends to shareholders. Think big blue-chip names like Coca-Cola, Johnson & Johnson, or Procter & Gamble.

Some popular dividend ETFs yield around 3% to 4%, which can help supplement retirement income without touching your principal.

Just remember, unlike CDs or annuities, returns aren't guaranteed. The market can still go up and down. But over time, dividend-paying companies tend to be stable, profitable, and recession-resistant.

4. Bond funds

Bond funds work by pooling investor money to buy a mix of bonds, like U.S. Treasuries, municipal bonds, and corporate debt. These bonds pay interest over time, and the fund passes that income along to you.

Many retirees stick with short- or intermediate-term bond funds, because these are less sensitive to interest rate swings and better for stability.

5. High-yield savings accounts (HYSAs)

Let's not forget about god ol' fashioned high-yield savings accounts.

Many top online banks still pay 4.00% APY or more for HYSAs. And your money stays completely liquid. Plus, they're FDIC insured, and most accounts have no monthly fees or balance minimums.

If you're still storing money in a checking account earning pennies in interest, it's time to open an HYSA. Check out the best HYSA accounts in August 2025, offering up to 4.30% APY.

Keep it safe, but not idle

Retirees don't need to chase risky returns. And parking cash in a checking account earning near-zero interest isn't the answer either.

You can still earn 4.00% APY or more with low- or no-risk products. It just comes down to picking the right option for your goals.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Synchrony Financial is an advertising partner of Motley Fool Money. Joel O'Leary has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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If you've ever wondered who's rocking a perfect 850 FICO® Score, here's your answer: not many people. In fact, just 1.54% of Americans are in that elite club, according to Motley Fool Money research.

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As someone who spends way too much time buried in credit score data, I can tell you -- it's not luck. People with an 850 have very intentional habits that protect and grow their credit over time.

Here are four traits that the rest of us can learn from.

1. They have two more credit cards

The average American has 3.9 credit cards. But people with perfect credit have close to 5.8.

More cards might sound risky. But having multiple accounts open can actually help your score -- if you manage them well. More cards can give you a higher overall credit limit, which lowers credit utilization. It also shows issuers a diverse credit history.

Now, before you rush out and apply for 10+ new credit cards… remember it's not solely about quantity.

Perfect scorers keep their balances low, make every payment on time, and let those accounts age like fine wine.

If you're considering opening another card, choose one that actually benefits you -- with rewards you'll use and terms you can manage. Check out our picks for the best credit cards to find one that fits your spending habits.

2. They carry lower balances across the board

Experian data shows people with perfect credit scores carry an average credit card balance of $3,028. That's less than half the national average of $6,501.

And it's not just credit cards. They also tend to have lower balances on auto loans, mortgages, and other loans. Lower debt levels mean less strain and more room to pay bills on time -- a big factor in the average credit score across the U.S.

If you're carrying a lot of debt currently, make a commitment to start chipping away with small extra payments each month. It's a simple move that reduces interest costs and nudges your score upward.

3. They have zero late payments

A perfect credit score almost always comes with a perfect payment history. That means no delinquent payments showing up on their credit report (compared to the national average of 1.5 late payments.

Late payments can drag your score down for years, so avoiding them is priority number one. If you struggle with due dates, here are a few things to try:

• Set up autopay for at least the minimum amount
• Add payment reminders to your calendar
• Pay as soon as the bill arrives instead of waiting until the due date

On-time payments are the single biggest factor in your FICO® Score, making up 35% of it. Nail this, and you're halfway to a better score.

4. They play the long game

Two-thirds of Americans with perfect 850 scores are baby boomers or older, and another 26% are Gen X. Only 8% are millennials or younger.

That's not a knock on younger generations -- it's simply a reflection of how credit scoring works.

The longer your accounts have been open, the more history you have and better your score can be.

You can't fast-forward time, but you can avoid resetting your credit history unnecessarily. Closing old accounts, especially your oldest credit card, can shorten your credit history and hurt your score.

An 850 score is built, not bought

Nobody wakes up one morning with a perfect credit score. You only get to a perfect 850 with small, consistent habits stacked over months and years.

The good news is you don't have to hit 850 to enjoy the perks of a great score. Even moving from "fair" to "good" or from "good" to "excellent" can mean better loan rates, higher credit limits, and more rewarding credit cards.

So wherever you are today, keep going. Every on-time payment and smart credit move is another brick in your financial foundation.

See our list of the best credit cards to start building your score and earning rewards today.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Flying business class feels like you've unlocked a secret level of air travel. We're talking priority boarding, extra-wide seats, delicious meals, and yes -- champagne before takeoff.

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But as you're probably well aware, business class tickets can cost an absolute fortune. Like, three to five times more than economy tickets. Who can afford that?! (Not me.)

The good news is savvy travelers have a few tricks to avoid paying full price. Here are some habits you need to start copying.

1. Buy tickets with miles, not money

Most airlines give you two ways to book a ticket: pay cash or redeem miles. And while paying cash might work fine for economy, business class prices often offer discounts for redeeming miles.

For a long international route, it's not uncommon to see fares north of $3,000 if you pay in dollars. But you might be able to book the same business class seat for around 70,000 miles (plus a small amount for taxes and fees). That's an incredible deal.

So how do you rack up enough miles to pull that off? Well, it starts with joining an airline's frequent flyer program. But if you want to speed things up, using credit cards will help.

2. Use travel credit cards for everyday spending

Travel credit cards are the secret weapon for earning enough miles to fly business class. There are two main types you can choose from:

• Cobranded airline cards that earn miles with a single airline.
• Flexible travel cards that earn points you can transfer to various airlines.

Personally, I prefer cards that give me transfer flexibility. For instance, I use travel cards from Chase and Capital One. Each one earns points I can send to a dozen or more airline partners, which gives me way more choices when I'm ready to book.

The best part is it doesn't cost you anything. Since you earn points on everyday purchases like groceries, gas, and shopping, you can continue doing what you're already doing, but quietly build up points/miles in the background.

Many travel cards also offer large welcome offers for new customers. So you could even snag a quick 50,000 points or more after you meet the spending requirement.

See our top-rated travel credit cards here and start stacking points toward your next business class upgrade.

3. Keep travel dates flexible

Award seat availability is limited, and airlines release business class deals sporadically. So being flexible -- even by just a day or two -- can save you thousands of dollars (or tens of thousands of miles).

Some tools, like Google Flights and airline award calendars, make it easy to spot the cheapest days to fly. Flexibility isn't always convenient, but it's often the difference between flying up front or in the back.

4. Shop for airfare way in advance

Landing a business class bargain often comes down to playing the numbers. If you're booking last minute, you're stuck with whatever high-priced seats are left. So you need to shop as early as possible.

So, when should you start your hunt? According to Going, a site that tracks flight deals, the sweet spot is about one to three months before takeoff for domestic trips, and anywhere from two to eight months out for international flights.

These windows are when airlines typically drop their best fares.

If you're planning to fly during busy seasons -- like summer holidays or spring break -- you'll want to extend that search window by a few extra months.

5. Join loyalty programs and try to score elite status

Most airline loyalty programs are tiered. The more you fly and spend, the higher you climb up the ranks. The top tiers often come with free upgrades to business class when seats are available.

Chasing elite status is only worth it if you travel a lot. But even if you're not aiming for top-tier perks, signing up for loyalty programs never hurts anyway. It's usually free.

And pairing a good travel rewards credit card with airline loyalty programs gives you more ways to earn points and snag better seats. From there, it's just a matter of keeping an eye out for business class deals and working your way up to those elite perks.

Ready to earn your first business class ticket? Explore our favorite travel credit cards and start turning your everyday purchases into luxury travel rewards.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.JPMorgan Chase is an advertising partner of Motley Fool Money. Joel O'Leary has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and JPMorgan Chase. The Motley Fool recommends Capital One Financial. The Motley Fool has a disclosure policy.

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Earning 4.00% on your savings without any risk sounds too good to be true, right?

Looking for a secure place to grow your savings? See our expert picks for the best FDIC-insured high-yield savings accounts available today - enjoy peace of mind with competitive rates.

But that's exactly what a certificate of deposit (CD) can offer. While the stock market bounces up and down, CDs give you a guaranteed return.

Yes, they're a bit boring and old-school. But they can be a smart move to grow your money over the next year or two.

How CDs work

Think of a CD like a time-locked savings account.

You give the bank a lump sum of money, and in return it promises to pay you a fixed interest rate for a set period of time.

When that period ends (called "maturity"), you get your original deposit back, plus all the interest you earned.

A real life example

In June last year my friend opened a 12-month CD, which had a 4.50% APY.

He deposited $5,000, and patiently waited throughout the year...

Then in June this year, the CD matured. The bank returned his original $5,000, plus $225 in interest.

CDs come in all different shapes and sizes. Terms can range from 3 months all the way up to 10 years, or sometimes even longer.

The key is to pick a CD that matches your timeline and goals. Whether you're saving for a near-term expense or just want a safe place to park extra cash, there's likely a CD out there with a solid rate and term that fits.

Why CDs are so safe

CDs are considered "risk-free" because they come with FDIC insurance. This means your money is protected up to $250,000 per person, per bank.

So even if the bank fails, the government guarantees you'll get your deposit back.

That's a big deal when you compare CDs to other investment types like stocks, bonds, or real estate investments. With those, your returns aren't guaranteed at all.

The stock market can drop 20% in a year. Bond values can fall when interest rates rise. Even "safe" index funds fluctuate daily.

With a CD, you know exactly how much you'll earn, and your original deposit is protected no matter what happens in the economy or financial markets.

The only trade-off is that your money is "locked" during the CD term. If you withdraw early, you'll likely pay a penalty that eats into your interest.

Want a deeper dive? Read our complete guide to how CD's work.

How to choose the right CD for you

Here's how to pick a CD that lines up with when you'll need access, and how to score the best APY.

1. Choose the right term length

Think about your financial goals within the next few years… When will you need access to your cash again?

Here's a general guide that might help:

• 6-12 months CDs: Great for near-term expenses, like a big upcoming tax bill, or next year's tuition payment.
• 1-3 year CDs: Ideal for medium-term goals, like an upcoming car purchase. Or retirees that want to plan guaranteed income for the next few years.
• 3-5 year CDs: Best if you can afford to lock up funds longer, and you're not planning to touch the money until a future goal.

2. Look for competitive rates

Banks and credit unions set their own CD rates. And there's a wild range out there. Your goal is to find the absolute best rate possible, with a bank you trust.

While the national average for a 12-month CD is just 1.63% APY (as of Aug. 2025), some top online banks are offering 4.00% to 4.25% APY.

Our experts have already done the heavy lifting, rounding up the best CD rates from trusted banks so you don't have to.

3. Know the minimum deposit requirements

Some banks let you open a CD with as little as $100. Others might require an upfront deposit of $1,000 or more. Just make sure whichever CD you choose has a minimum that fits your budget.

4. Check the early withdrawal penalty

Every bank has its own penalty rules. Usually, if you pull money out of a CD early you'll forfeit a few months of earned interest.

But it's always worth reading the fine print, just so you know what to expect in a scenario where you need access to your cash. And if you're not sure about committing to a long term, choose a shorter-term CD to be on the safe side.

Don't miss out on 4.00%+ yields

The best CD rates are still hovering above 4.00% right now. But they won't stay there forever. The economy is shifting and interest rate cuts are widely expected to happen as soon as next month.

If you've got extra cash sitting in a low-yield account, now's the perfect time to lock in a guaranteed return.

Want to see which CDs offer the highest returns right now? Browse our expert picks for the best CD rates here and start earning more on your savings.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Synchrony Financial is an advertising partner of Motley Fool Money. Joel O'Leary has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

My uncle has been retired for about a decade. He's smart and lives well off his investments. But one of his money habits drives me nuts.

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He keeps between $100,000 to $200,000 in a checking account at any given time, just sitting there as future "spending money." And it earns zero interest.

I don't say anything (I've learned not to mix family and money advice), but it hurts watching him miss out on thousands every year in potential interest.

If you are retired and holding a large cash pile, don't let it sit idle like my uncle. Here's why a high-yield savings account (HYSA) is a smarter place for your money.

What makes high-yield savings accounts better?

High-yield savings accounts are just like other bank accounts you've always used -- only they pay way more interest.

Most HYSAs are offered by online banks, which save money by skipping physical branches and having streamlined operations. Those savings are passed on to customers in the form of higher rates.

Most online HYSAs offer:

• FDIC insurance (up to $250,000 per depositor, per bank)
• Most come with no monthly fees
• Transfers in and out are fast and easy
• You can automate deposits to simplify your cash flow

For retirees living off investment income, required minimum distributions (RMDs), or part-time earnings, an HYSA is a great place to hold cash between withdrawals.

How much interest could you earn?

Top HYSAs today are paying around 4.00% APY. That's a huge jump compared to the average checking account rate of just 0.07% (or worse, 0.01% at many big banks!)

Here's what that interest looks like after one year:

Not bad for a zero-risk move that takes five minutes to set up.

Why now is the perfect time to make the switch

Honestly, any time is a good time to earn more on your savings.

But, given that interest rates might be cut here shortly in 2025, the awesome APYs we've been enjoying for years could start to fade out.

Here's why now is a great time to move your cash to an HYSA:

• Rates are still high. We're in a sweet spot where many HYSAs are offering rates near or around 4.00% APY. That's an awesome rate for a risk-free account!
• Inflation is still a concern. Earning more interest helps your money stay ahead of rising costs.
• No fees = more money for you. Unlike traditional banks, most HYSAs skip the annoying monthly charges.

There's not much to lose with an HYSA… but a whole lot to gain. Even for folks who aren't retired and hanging onto a lot of cash, it's a great account to let your money grow passively over time. In fact, I personally earned almost $800 in interest last year with my HYSA.

Your cash deserves better

You don't have to ditch your current checking account or leave your bank completely. You can still use it for daily spending.

But opening a separate HYSA just for storing extra cash can help you earn a whole lot more. It could mean hundreds -- or even thousands -- in extra interest over the course of a year.

So go ahead. Give your savings a well-deserved raise. Compare the top HYSAs today and open one that fits your goals.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

Right now, the average personal loan interest rate is 12.65%, according to Bankrate. But what if there was a way to get a 0% interest rate for almost two full years instead?

Looking for a secure place to grow your savings? See our expert picks for the best FDIC-insured high-yield savings accounts available today - enjoy peace of mind with competitive rates.

Before taking out a personal loan, see if you can qualify for a 0% intro APR credit card. In many cases, you can accomplish the same goals -- like consolidating high-interest debt or financing a large purchase -- without paying any interest at all.

This strategy isn't talked about enough, but it could save you thousands in 2025. Let's break down how it works.

What is a 0% intro APR credit card?

A 0% intro APR credit card lets you avoid interest charges for a promotional period, often 12 to 21 months.

The no-interest period can be for either:

• New purchases (useful for big expenses you want to split into payments)
• Balance transfers (good for consolidating and paying off existing high-interest debt)

Some cards offer both.

During the 0% APR promo window, every dollar you pay goes toward your actual balance, not toward interest. It's like hitting "pause" on the cost of borrowing.

This can be an amazing tool for people who are stuck with a mountain of existing credit card debt. Pausing interest gives them breathing room to pay down principal, and get out of debt faster with less interest.

If you're looking for a longer 0% APR period, check out this card that we recommend. It offers nearly two years of 0% intro APR for both new purchases and balance transfers. That's a huge window of time to make payments and pay no interest.

Why personal loans aren't always the best choice

I get why people like personal loans. They're great for bigger projects and payoff timeframes stretching multiple years. They're also predictable, structured, and can be easier to qualify for with fair credit.

But here's the problem. The interest starts immediately, and the rates aren't exactly cheap.

For example, let's say you take out a $10,000 personal loan at 11% APR for two years. Your total interest paid would be over $1,185.

Now compare that to putting that same $10,000 on a 0% intro APR card and paying it off over 21 months. You could pay zero in interest if you're disciplined.

When using a 0% intro APR card makes sense

Credit cards aren't magic. They can be a double-edge sword which can either help your finances or hurt them.

Here's when 0% intro APR credit cards make sense:

Paying off high-interest credit card debt

Balance transfer cards let you move your existing balance(s) to a new card with 0% APR for a set period.

Making a large one-time purchase

Got an unexpected car repair or medical bill? Instead of financing it with a personal loan, a 0% intro APR card can let you pay it off gradually over a lengthy promo period.

You have good-to-excellent credit

Most of the top 0% intro APR cards require good credit or higher (typically 670+). So definitely check your score first before applying.

What to watch out for

Two quick gotchas that you should be aware of:

1. Balance transfers come with a fee. This is usually 3% to 5% of whatever balance you transfer over. This isn't too bad though, as it's usually more than offset by the interest you can save.
2. The 0% intro APR period eventually ends. And when it runs out, the normal APR for the credit card will kick in (and it's likely super high!). So if you anticipate needing a loan for two years or longer, a personal loan may be a better fit.

Using a 0% intro APR credit card instead of a personal loan could save you hundreds (or even thousands) of dollars over the next couple years.

I've seen folks use these cards to escape debt faster, tackle emergencies, or finally feel in control again. It's a tool, not a shortcut -- but the right tool can make all the difference.

Looking for an interest-free alternative to a short-term personal loan? Explore the top 0% intro APR cards with up to 21 months of no interest

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

I've always thought of certificates of deposit (CDs) as a decent mid-term play. The rates are predictable. The risk is low. But they've never really clicked with me.

Looking for a secure place to grow your savings? See our expert picks for the best FDIC-insured high-yield savings accounts available today - enjoy peace of mind with competitive rates.

That's because CDs don't do much for two key goals:

• If I need short-term flexibility, a CD just ties my money up.
• If I want long-term growth, CDs get left in the dust by higher investing returns.

Even now, with some CDs offering 4.00% APY, I'd rather keep my cash in accounts that give me more control, or grow it in assets with higher upside.

Here's where I'd put my money instead.

Short term: A high-yield savings account

If you're saving for something in the next year or two (like a vacation or new car) your money needs to stay safe, liquid, and ideally earn big interest.

That's where high-yield savings accounts (HYSAs) shine. Some top online banks are offering near 4.00% APYs, and your money remains fully accessible.

Here are of the top perks of HYSAs:

• No early withdrawal penalties
• FDIC insurance on balances (up to $250,000 per depositor, per bank)
• Many online banks offer no fees, no minimum balances, and unlimited transfers.

I've personally kept my ~$25,000 emergency fund in an HYSA earning above 4.00% for the last couple years. And it's really paying off. I get nearly the same interest rate as some of the best 1-year CDs, but without any lockup.

Check out today's top HYSA rates and start earning more on your cash savings.

Long term: Low-cost index funds

CDs and savings accounts protect your money. But if you want your money to grow over the long term, investing is where the real power is.

Over the past 30 years, the S&P 500 has returned an average of about 10% annually. That's more than double today's top savings account and CD rates.

And when compounded over many years, the difference is mind-blowing.

Here's an example of how $10,000 would grow over decades at either a 4% or 10% average rate of return:

Personally, most of my long-term savings are in index funds. I've always seen index funds as one of the most reliable ways to build wealth over time, especially low-cost funds that spread your money across hundreds of companies (like S&P 500 funds).

If you're already contributing to a 401(k) plan, chances are you're investing in a mix of highly-diversified mutual funds already. But if you want more flexibility or investing options outside of retirement accounts, opening a regular brokerage account is a great move.

I don't try to stock pick or outperform the market. I'm happy taking an average return and letting time and compound interest grow my wealth.

The bottom line

CDs aren't useless. But they only suit a narrow scope of financial goals.

If you need short-term access and flexibility, high-yield savings accounts offer similar 4.00% returns with way less restriction.

And for long-term goals, low-cost index funds have a proven track record of building serious wealth over time.

Want to get in on the stock market's high returns? Check out our list of the best stock brokers to open an account and start investing today.

Alert: highest cash back card we've seen now has 0% intro APR into 2026

This credit card is not just good – it's so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

I used to be naive about earning interest. For over a decade, I parked all my cash in a basic checking account, earning pennies.

Looking for a secure place to grow your savings? See our expert picks for the best FDIC-insured high-yield savings accounts available today - enjoy peace of mind with competitive rates.

That one lazy habit probably cost me over $10,000 in missed growth throughout my 20s and 30s. Ouch!

But a few years ago, I wisened up and learned about high-yield savings accounts (HYSAs). I opened one online and last year alone, I earned $798 in interest.

Here's what you need to know about high-yield accounts, and how to 50x your earning rate.

Why your checking account is probably letting you down

Checking accounts are built for spending -- not saving. The problem is that most people use them for both.

Right now, the average checking account pays just 0.07% APY. That means $10,000 sitting there all year earns you just $7 in interest. Not even enough to buy a combo meal at In-N-Out Burger.

Meanwhile, some high-yield savings accounts (HYSAs) are paying over 4.00% APY. Same $10,000, but now you're earning $400 a year in interest.

That's over 50x the interest just for moving your money to a better spot.

HYSAs are just as safe and accessible

Here's what most people don't realize (I didn't either at first): High-yield savings accounts work basically the same as regular savings accounts -- except they actually pay you meaningful interest.

You can move money in and out easily. Most HYSAs link directly to your checking account (even at a different bank), so transfers are quick and painless.

And they're just as safe. Most HYSAs are FDIC insured up to $250,000, meaning your money is protected even if the bank goes under.

Even better, thanks to modern fintech banks, many of the top online HYSAs come with:

• No monthly fees
• No minimum balance requirements
• Unlimited transfers
• Clean mobile apps and fast support

The setup I use

I didn't ditch my old bank entirely. I still use it for checking accounts and my day-to-day banking.

But I keep as little cash as possible there. All my cash savings (emergency fund, short-term savings for travel, etc) are all stored in my HYSA.

Here's my current setup:

• Checking account: I keep about one month of expenses for bills and spending. This is where I get my paycheck deposited and pay all my bills.
• HYSA: I keep three to six months of expenses for emergencies and other short-term goals. This all earns 4.00% APY (about $3 in interest per day with my current balance!)

My accounts at both banks are connected to each other for easy transfers. It gives me the flexibility to move money around however I want while also earning a high interest rate.

How to switch (or add) a high-yield savings account

Opening an HYSA is super easy. It takes about 10 minutes online.

Here's how to do it:

1. Shop around for an account offering a high APY. Here's our list of top HYSA's right now, with rates up to 4.40% APY.
2. Open the account with a small deposit (most have no fees or minimums).
3. Link it to your current checking so you can transfer funds easily.
4. Move your savings. Feel free to start slow, but once you see how much interest you're earning, you'll probably move your entire cash pile into your new HYSA.
5. Automate any recurring deposits you want to grow.

Pro tip: Set a calendar reminder every six months to check your APY. If your rate drops or circumstances change, it might be time to re-evaluate.

Stop forfeiting free money

Don't let your money sit around doing nothing.

If you're earning close to 0% interest like I was for many years, you could be missing out on hundreds (or even thousands) of dollars every year in free, no-risk growth.

Opening a high-yield savings account is fast, easy, and makes your money more productive overnight. Compare all the top high-yield savings accounts here and start earning more today.

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Right now, the average savings account pays just 0.38% APY. The average checking account is even lower, at 0.07% APY. That's less than a dollar a year in interest on a $200 balance.

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But some of today's top banks are offering 4.00% APY or more for high-yield accounts. I'm using one personally and earned $798 in interest last year alone. Oh yeah, and my bank has no fees, account minimums, or the clunky tech of old-school institutions.

If you've been with the same bank for two decades, you're probably leaving money (and modern features) on the table. Here's what you could gain by switching.

Earn up to 10x more interest

The biggest reason to ditch your outdated bank account is higher interest. Way higher.

Traditional banks are notoriously stingy when it comes to paying interest. Meanwhile, modern online banks are fighting for your business by offering high-yield savings accounts (HYSA) with rates of 4.00% APY or more.

This can mean earning a LOT more money on your savings. Here's the difference interest can make with a $10,000 balance over the course of a year:

It's the same money. Just parked in a better place. And earning over 10X the national average savings rate.

And before you ask -- yes, online banks are just as secure as traditional banks. They're FDIC insured with protection up to $250,000 per depositor.

By the way, you don't need to completely switch everything to a new bank. Personally, I still keep my everyday checking with a big bank (Chase). But all my cash reserves are over at an online HYSA with a top rate.

Goodbye maintenance and junk fees

On average, top U.S. banks charge $13.95 per month in checking account fees, according to a February 2025 MoneyRates report.

That's over $165 a year, just for the privilege of having an account. No thanks!

Most fintech banks are built differently. They pride themselves on charging no fees and having no account minimums. Particularly for online banks… Their lean physical footprint and modern applications means they have less overhead to cover.

Here are a few things you can look forward to with many online fintech banks.

• $0 monthly maintenance fees
• $0 overdraft fees
• No minimum balance requirements
• Free ATM access or fee reimbursements

Some even refund ATM charges from other banks -- which means you can access your cash without hunting for the "right" ATM.

In other words, you keep more of your own money. And that's the whole point, right?

Enjoy faster apps and smarter tools

To their credit, I will say that big bank mobile apps are starting to get less "clunky." They handle the banking basics just fine, like mobile deposits and money transfers.

But fintech banks take it even further. Built for the app generation, they typically come with faster interfaces, user friendly designs, real-time alerts, and slicker user experiences overall. It's modern banking that actually feels modern.

It's time to switch (or at least explore alternatives)

You don't have to cut ties with your old bank completely. I didn't. I use a hybrid setup, with a couple accounts at a big-name bank for convenience, and a few higher-yield accounts at online banks to make the most of my cash savings.

Even just shifting part of your cash to a better account can make a big difference. So don't settle. Start saving more today with a high-yield, online bank that pays YOU for being a customer.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.JPMorgan Chase is an advertising partner of Motley Fool Money. Joel O'Leary has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

Most humans think linearly -- in a straight line. So it's hard to imagine how saving $12 per day could ever amount to much. Over 30 days, it's just $360.

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But money saved over time actually grows exponentially -- like a curve that ramps upward. It starts small and slow, but ramps up over time until it skyrockets.

The truth is, $12 a day can grow to over $489,000 after 30 years. Stick with it for 40 years, and you're looking at more than $1.1 million.

Here's how -- and the easiest places to start saving today.

What $12 per day can grow into

Let's assume you saved $12 per day, and put it all into an investment account growing at an average annual 8% return.

Here is how much it could grow to over time:

The reason I use an 8% return is because it's a conservative benchmark for long-term, diversified investing -- slightly below the S&P 500's historical average of around 10% per year.

The point is, small habits can lead to massive results. The trick is to just start ASAP, be consistent, and invest in the right place.

Make it easy with index funds or a robo-advisor

Index funds are one of the most reliable long-term wealth builders. Especially low-cost funds that track major indexes like the S&P 500. They spread your money across hundreds of companies and grow as the market grows.

You don't need to be a stock picker or study the markets to be good at investing. In fact, you shouldn't try and outsmart the stock market. Taking a passive, long-term approach works out better for most people.

Set up automatic transfers

The hardest part of saving is staying consistent. That's where automation comes in.

Here are a few tools and systems to try which make things easier:

• Set up automatic transfers from your checking account to your investment account -- either monthly or each payday. Just pick a set amount (e.g., $360 per month) and stick with it.
• If your job offers a 401(k) plan, use this to invest a portion of each paycheck. The money will be taken out and invested automatically, without you having to think about it.
• If you can, increase your contributions every time you get a raise, bonus, or cut a recurring expense. This will accelerate your growth and timeline.

When the money moves automatically, you won't miss it. It becomes just another “bill” -- except this one pays you later.

Small saving habits can change your life

I love this savings example because $12/day feels doable for most people. And once a savings habit is in place, you don't need to think about it. You can just keep living while riches grow in the background.

I'm super lucky -- my parents drilled this lesson into me at a young age. I'm 40 now and have already amassed a pretty large nest egg from slowly saving small amounts.

But it's never too late to start. Save what you can, set up an automated investing system, and repeat. Small amounts really do add up.

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I know, I know… Using your debit card is easy. It's familiar. It keeps you out of credit card troubles. I totally get it.

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But seriously, if you're still using a debit card to pay for travel stuff -- like flights, hotels, or rental cars -- you might be unknowingly leaving hundreds (or even thousands) of dollars on the table.

Not to mention, you could be missing out on some other perks and protections that can save your trip if things go sideways.

Here's everything you need to know -- and how to switch things up without overcomplicating your life.

Credit card rewards can offset your entire trip

Let's talk numbers. Many of the best travel cards offer anywhere between 2% to 5% back in rewards on travel-related purchases. That may not sound like much -- until you add it all up…

Say you spend $3,000 on flights, hotels, and food during a single trip. That could net you an easy $60 - $150 or more in rewards, depending on the card you have.

And that's just for a single trip! If you're traveling multiple times a year, and using the card on regular purchases, it's easy to rack up over $500 in annual travel rewards.

Debit cards don't offer anything close to this in rewards.

If you're looking for an easy starter travel card, check out this crowd favorite from Chase. I've personally used it for years, and right now it comes with a massive welcome offer for a limited time.

Built-in protections can save your trip (and your wallet)

Beyond points, another huge benefit of travel cards is built in protections and insurance.

Here are just a few of the protections you can get when you book travel with the right cards:

• Trip cancellation or interruption coverage: Get reimbursed if your trip gets delayed or canceled for covered reasons
• Lost luggage reimbursement: Receive money if your bags go MIA
• Rental car insurance: Decline the rental company's pricey coverage and still be protected
• Emergency assistance: Access help abroad, from medical referrals to travel coordination

If you book travel with a debit card, you probably won't get any of these. That means if your plans go sideways, you're likely on your own -- financially and logistically.

How to switch smartly (and maximize your rewards)

Here's a simple four-step way to dip your toe in the credit card rewards pool:

1. Pick a starter travel card -- Here's our best travel cards list. You can't go wrong with either of the top two.
2. Start with travel bookings -- Use this credit card only when buying flights, hotel stays, or rental cars.
3. Pay it off right away -- Treat it like a debit card by paying the balance in full after each use.
4. Track your rewards -- Use the issuer's portal or app to see how quickly your points add up.

This strategy gives you all the best rewards, protections, and perks, without risking credit card debt or overspending.

Interested in even more travel perks, like VIP status upgrades or lounge access? Compare all our top-rated travel credit cards here for 2025.

You're booking travel anyway. Might as well earn rewards by using different cards. Your next trip could pay for your next-next trip. Just sayin'!

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On average, full coverage car insurance in the U.S. costs about $2,680 a year (that's $223 a month.) But for minimum coverage, that average drops to around $802 a year ($67 a month), according to Bankrate.

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Keep in mind, those are just averages. Your premiums could be a lot lower (or higher) depending on where you live, what you drive, your driving history, and more.

So how do you know if you're overpaying? Here's what to know and how to check.

How do you compare to the national average?

I'll go first. My full coverage premium right now is $1,047 per year. I live in California, have an excellent credit score, drive a minivan (dad mode), and only drive about 6,000 miles a year.

I pay less than half the national average for car insurance. But it didn't happen by accident. I keep a clean driving record and credit profile, and I shop around rates pretty often.

And trust me -- shopping around once in a while really pays off. Here's a free tool to compare rates from the top insurance companies.

You could save hundreds, just by checking what's out there.

What affects your car insurance rate?

There's a long list of factors that impact your auto insurance premium. Some of them you can control, and others you can't.

Here are the big ones insurers look at:

• Your location: Rates vary dramatically by state and even ZIP code. Michigan drivers, for example, pay more than twice as much as people in Vermont.
• Driving record: Accidents, speeding tickets, or DUIs can spike your rate for years.
• Vehicle type: Minivans and sedans are typically cheaper to insure than sports cars or luxury vehicles.
• Credit score: In most states, a higher credit score means a lower insurance premium.
• Annual mileage: Less time on the road usually equals lower risk (and cheaper coverage).
• Coverage level: Full coverage costs more than minimum coverage, but it offers far better protection.
• Deductible amount: Choosing a higher deductible can lower your premium.

I know, that's a lot to keep track of. But understanding the dials you can turn gives you the best shot at lowering your rate.

It pays to shop around

Consumer Reports recently found that 30% of car owners switched insurers in the last five years, and the median savings for those who did was $461 per year.

Here's the thing, though: You can't just sit around and wait for a discount.

If you want a lower premium, you've got to ask for it. And the only way to save is by shopping around and getting new quotes.

Personally, I shop around at least once a year. More often than not, I confirm that I already have the best deal for me. And it makes me feel good knowing I'm not overpaying.

But then there are times when I save a bunch of money for the exact same policy!

Bottom line: Don't wait for your renewal date. Check out this free tool to compare rates from the top insurance companies. It only takes a few minutes, and you could save hundreds!

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Top 6-month CDs are still paying around 4.00% APY as of right now. But that may not last much longer. In its June meeting, the Federal Reserve held interest rates steady, with the next policy decision expected in late July.

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Still, many banks have already started quietly trimming CD and savings rates in anticipation of potential cuts later this year. Even without a formal Fed move, yields could continue to slip.

If you're thinking about locking in a short-term CD, now may be your best shot before rates trend lower.

Why a 6-month CD could be the sweet spot

Short-term CDs let you lock in a fixed return, but still give you access to your cash relatively soon.

It's a step up from a high-yield savings account (which can change rates anytime) but doesn't require tying up your money for years.

That's especially helpful in uncertain markets or if you think you'll need your funds soon.

Right now, some of the best CD rates are up to 4.00% APY on 6-month terms. That's about $200 in interest on a $10,000 deposit, and you'd get your cash back before Christmas!

Consider CD laddering with different terms

If you're working with a larger balance, you might want to spread your cash across multiple CDs with different timeframes.

This strategy is also called CD laddering. It's the perfect way for people to lock in top rates, and stagger maturity dates so they have regular access to their cash.

For example, here's a simple CD ladder spreading $40,000 across four CDs with a $10,000 in each:

Over a two-year period, you could earn $1,815 in interest, while still having access to your initial $10,000 deposits every six months.

By the way, if the Fed begins cutting rates (as is expected to happen before the end of the year), it's likely that all CD terms will drop -- not just the short-term ones. So no matter the CD term you're interested in, it might be smart to lock in your rate sooner rather than later.

When a CD might not be the right fit

CDs are great for money you won't need to touch. But if there's any chance you'll need access before the term is up, they can be a bit restrictive.

Most banks charge a penalty for withdrawing early from CDs. Usually, the fee is forfeiting anywhere from three months to the entire amount of interest earned.

So if flexibility is a priority, a high-yield savings account (HYSA) could be the better fit.

HYSAs are also offering around 4.00% APY right now, but they are exposed to instant rate changes whenever banks want to implement them.

If you value access over a fixed return, a HYSA may be the safer move. (I personally fall into this camp).

Final thoughts

Opening a 6-month CD now could be a smart way to lock in a solid short-term return before rates decline. It's safe, predictable, and doesn't tie up your money for too long.

And with the Fed hinting at rate cuts as early as this fall, this might be your last window to capture top-tier CD yields. Compare today's best 6-month CD rates and start earning more on your cash.

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Most people stash their emergency savings in a high-yield savings account -- which is a solid idea. But my buddy stores his $60,000 in savings a different way.

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He built a CD ladder that pays him every month like a self-funded paycheck.

His logic is that if (when) something bad happens -- like losing his job -- he probably wouldn't need all $60,000 on day one. He'd just need a few grand each month to cover bills.

So he split his emergency fund into 12 $5,000 CDs, each with a 12-month term, staggered monthly. That way, one CD matures every month, and he can roll it over or cash it out as needed.

It's a simple move, but it locks in a higher interest rate for most of his cash than a savings account could.

The setup: 12 CDs, 12-month terms, $5,000 each

Here's the gist of how his CD laddering strategy was built:

• He split $60,000 into 12 separate CDs, each with a $5,000 deposit.
• He bought all the CDs on a rolling monthly basis.
• That means one CD matures each month, freeing up $5,000 (plus interest).
• When a CD matures, he simply rolls it into a new 12-month CD at the current best rate. (Or he can use it in case of emergency.)

It's quite genius, actually. He has regular access to his cash, pays no penalties or fees, and earns the best available APYs for 1-year CDs every month.

Want to copy this setup?

So how much does he earn?

Let's do the math based on the best 1-year CD rates right now -- we'll use a 4.00% APY as a rough average.

Each $5,000 CD earns around $200 per year, or roughly $16.67 per month.

Multiply that by 12 CDs, and he's bringing in around $200 per month in passive income, or $2,400 per year.

Truth be told, he began this ladder strategy a couple years ago when rates were even higher. So he's probably earning even more because some of his older CDs are probably still paying higher rates.

That's the beauty of laddering, and why it's important to lock in good rates before they drop. The Federal Reserve is meeting again on June 17-18, and if they decide to cut rates, today's top CD offers could disappear fast.

Is CD laddering right for you?

I'll be honest -- personally, I don't keep my own emergency fund in a CD ladder. I use a high-yield savings account.

I know CDs might pay me a tiny bit more in interest. But I feel better knowing I can access all of my cash at any moment if I need to. It's a security thing, I guess.

That said, CD laddering makes a ton of sense for people who want to earn more on their cash without giving up all their access. Especially if you've got a large emergency fund or money earmarked for a goal that's still a few years out (like buying a house).

If you're sitting on a chunk of cash and want to earn more without taking on risk, a CD ladder could be your next smart move. It's low-effort and low-risk, and you can customize it however you want.

Start by exploring the top CD rates available right now -- our team updates the list regularly so you can lock in a great APY before rates drop.

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Right now, I have about $25,000 sitting in a high-yield savings account earning 4.50% interest. If I lost my income tomorrow, that cash pile would help cover my family's bills, groceries, and other expenses without going into debt.

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But is it enough to protect me in a recession? What's the ideal savings number to help us ride out a lengthy rough patch?

A six-month buffer is ideal

If you lost your job today, how long would it take to find another one?

In a strong economy, it could be fairly quick. You might land a new gig within a month or two, or pick up some freelance or side work to keep money flowing.

But during a recession, when layoffs spike and hiring slows, finding work could take much longer.

In fact, during the 2007-2009 Great Recession, the median unemployment period was 25.2 weeks (nearly six months), according to the Bureau of Labor Statistics. And when jobs are scarce, even gig work can dry up.

That's why personal finance expert Robert Brokamp recommends folks lean toward a larger savings cushion:

Basically, saving six months of expenses gives you more time to find a job if the economy goes south.

Here's what six months of savings looks like at different spending levels:

Where to keep your emergency savings

This part matters more than most people think.

Keeping your emergency fund in a safe place that's easy to access is important. But you also want to earn maximum interest on your cash.

That's why a high-yield savings account (HYSA) is the best spot. HYSAs earn about 10 times the national average APY. And today's top accounts are offering rates up to 4.40%.

HYSAs are also FDIC insured, up to $250,000 per depositor. So you can relax knowing your money is federally protected, even if the bank you're with goes out of business.

A barebones budget can help

My wife and I usually spend about $6,000 to $7,000 per month. So, at our normal spending rate, our $25,000 emergency fund would last us around three to four months.

But here's the thing. If I actually lost my job and couldn't find work right away, we could tighten up our spending quite a bit. We could pause travel, cut subscriptions, and put a temporary freeze on non-essentials. That would shrink our monthly spending significantly, maybe to $4,500 per month. Our emergency fund would last us closer to six months then.

This stripped-down version of our expenses is called a barebones budget. It's a super useful tool to have in your back pocket.

Pro tip: Some banks offer built-in budgeting tools that help you track your spending and flag unnecessary expenses that can be cut fast.

Tips to build up your recession fund faster

If you don't have a full six months of savings currently, here are a few moves that can get you there faster:

1. Set up automatic transfers. Each payday, move a bit of money from your checking account into savings. Then you'll be stashing money without even thinking about it.
2. Save any windfalls. Bonuses, tax refunds, or birthday cash from grandma…put it all right toward your savings goal.
3. Cut back temporarily. Skipping one dinner out per week could save you $200 a month or more. Believe me, the sacrifice will be worth it when you're sitting on a full emergency fund.
4. Get the highest APY you can. Park your savings in an HYSA with one of the best available APYs. All that interest helps your fund grow faster.

Progress feels slow at first, but momentum builds fast.

Recessions are unpredictable. Having a solid cash cushion means you don't need to panic-sell investments or swipe a credit card when life gets rocky.

So whether your number is $5,000 or $50,000, start stacking that fund today. The peace of mind is worth every penny.

No one ever regrets having extra cash in a crisis. Explore the top high-yield savings accounts today and start earning up to 4.40% APY, with zero risk and full liquidity.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Joel O'Leary has no position in any of the stocks mentioned. The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy.

Image source: Getty Images

My wife and I became millionaires fairly early in life. And while you might think we won the lottery or were early crypto adopters, the truth is painfully unsexy…

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We just started automatically investing a portion of every paycheck, stuck with it, and let time do the rest.

That one habit changed everything for us. And it's the exact same step I recommend to literally anyone who wants to retire wealthy.

How a tiny investment grows into $1 million

One of the biggest complaints I hear people saying is, "I can't save very much."

But what they don't realize is how little amounts can grow to massive numbers over time. It's all due to compound interest.

Here's an example using $300 per month. If you invested each month with an 8% average annual return (a common long-term stock market estimate), here's how it would grow over time:

That's just ten bucks a day. And if you can double that savings to $600 per month, you will double all those future values.

You can start with even less. The habit matters more than the amount. Over time, as you earn more or have more breathing room, you can increase your contributions.

Even better, automate your investments. If money goes straight from your paycheck to your 401(k), you'll never have a chance to spend it -- and you probably won't miss it.

Not sure how to get started? With our partner, SmartAsset, you can get matched with up to three fiduciary advisors so you can get professional advice.

Best "set-and-forget" investing accounts

If you want to build wealth on autopilot, these accounts make it easy to invest consistently and forget about it until retirement.

401(k): Invest straight from your paycheck

If your job offers a 401(k), that's usually the easiest place to start. Money gets taken out of each paycheck and invested before it even hits your bank account. Plus, many employers offer a match -- and that's free money.

A Roth or traditional IRA

A Roth IRA is great if you're still in a lower tax bracket, because withdrawals in retirement are tax-free. A traditional IRA gives you a tax deduction now, but you'll pay income tax on your withdrawals later.

Either way, IRAs are simple to set up and perfect for building that automatic investing habit. Open your first IRA with one of these top-rated brokers.

A regular brokerage account

I encourage everyone to prioritize their 401(k)s and IRAs, because they have tax advantages and are built for retirement saving. But if you've already maxed those out, go with a standard brokerage account.

No matter what account you invest in, make sure to set up those recurring transfers.

If you're consistent, the wealth will show up. Maybe not tomorrow, maybe not next year. But eventually compound interest will kick in and take over -- just like it did for me and my wife.

Want to talk with a professional? A short questionnaire from our partner, SmartAsset, helps match you with up to three fiduciary financial advisors, each legally bound to work in your best interest.

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Think for a second: How do you win a game of Monopoly?

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Do you circle the board as fast as you can, refusing to buy anything, and only focus on stacking up cash?

Of course not. You buy properties. You invest early and get your hands on as many assets as possible. It's a race to build hotels and collect income. The players that buy nothing and hoard cash? They lose.

Well, the same idea applies to retirement and real life. Saving is crucial. But investing is what builds real wealth.

Why saving alone won't get you there

Let's say you save $500 per month, and put all of that money into a checking account at the bank. Do you know how long it will take to save up $1 million?

It will take 166 years. Not kidding.

Simply stashing money in a bank account makes it incredibly difficult to reach your retirement goals. But when you invest your money and activate compound interest, your wealth grows like a snowball.

Now let's look at what investing can do with $500 per month. Instead of saving in a checking account, let's say you invest all those dollars in a 401(k) or IRA. With an 8% average annual return (I'll explain why I chose this rate later), reaching that $1 million would only take 35 years.

That's a difference of 131 years!

You can even reach $1 million much sooner, by either saving more or getting a higher return on your investments. The reason I used an 8% annual growth rate is because it's a conservative estimate, slightly below the S&P 500 Index's long-term average of about 10%.

By the way, if you're confused about all this investing stuff, it never hurts to connect with an advisor. A short questionnaire from our partner, SmartAsset, helps match you with up to three fiduciary financial advisors, each legally bound to work in your best interest.

Automate everything

One of the best money moves I ever made was automating my retirement contributions.

Every paycheck, a little bit of money gets transferred into my investment accounts, without me ever having to think about it. And over the years, those small, consistent deposits have quietly grown into big balances.

If your workplace offers a 401(k) plan, start there. And if they offer a match, grab it! That's free money. Another easy option is opening an IRA and scheduling monthly transfers.

Experts recommend saving 10% to 15% of every paycheck. But honestly, I encourage people to save even more if they can.

Keep it simple with index funds

I'm a huge fan of index funds. These are low-cost funds that track big chunks of the market, like the S&P 500 Index.

That means when you invest in one fund, you instantly own shares of hundreds of companies -- without having to pick and choose.

Another easy setup is target-date retirement funds. They're like all-in-one portfolios that invest your money in a mix of stocks and bonds, and automatically adjust that mix as you get older.

And if you want a completely hands-off experience, it might make sense to work with an advisor. This no-cost quiz from our partner, SmartAsset, makes it easier to find a fiduciary financial advisor.

Go build your Monopoly board

Saving for retirement is a long-term game.

Just like collecting properties in Monopoly, the key is to keep stacking assets over time. Those investments will start paying dividends, growing in value, and snowballing into real wealth.

To make it easier, set your contributions on autopilot. This makes investing a habit, so all of your dollars are working hard while you continue living your life.

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Some of the top CDs are paying well over 4.00% APY right now -- a rare treat if you've been stuck earning pennies in a basic savings account.

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But with the Federal Reserve hinting at rate cuts later this year, you might be wondering: Should you lock in today's high rates? Or is it smarter to keep your cash flexible?

Let's break down the latest CD rates, a smart strategy for investing in CDs, and how high-yield savings accounts (HYSAs) stack up today.

Best short-term CD rates in May 2025

Right now, short-term CDs are offering higher yields than their longer-term counterparts.

Here's how the top shorter-term CD rates stack up as of May 2025:

If the Fed lowers rates soon, we'll likely see these rates drop quickly. So if you've got cash you don't need for the rest of 2025, it might make sense to lock in a great rate while you can.

Explore all the top CDs of May 2025 to see the latest high-rate options before they disappear.

A CD ladder can give you more flexibility

If you're worried about locking up cash for too long, CD laddering can be a good strategy.

It works like this:

• Start by splitting your money into equal parts. For example, you might split $20,000 into four lots of $5,000.
• Next, open several CDs with staggered terms. For example, one for 6 months, one for 12 months, one for 18 months, and another for 24 months. Put $5,000 into each.
• As each CD matures, you can either cash it out if you need the money, or roll your funds into a new long-term CD to keep the ladder going.

Laddering allows you to lock in today's great rates, but gives you regular chances to change your strategy (or lock in higher rates if they come available).

If you're building a ladder, short-term CDs are your best building blocks right now thanks to their higher APYs.

High-yield savings accounts are great too

If locking up your money makes you nervous, a high-yield savings account might be a better home for your cash.

Right now, the best online HYSAs are paying around 4.00%, which is only slightly lower than what you can earn with short-term CDs.

The main downside is: HYSA rates are variable. If the Fed cuts rates, your savings rate will follow suit, unlike your CD rate that's locked in.

Personally, I keep about $25,000 in an HYSA. For me, it's worth a little less yield to know I can access my cash instantly if something unexpected comes up.

Don't miss today's high rates

CDs are absolutely still worth considering in May 2025 -- but only if they fit your savings timeline. If you can afford to lock your money up for between six and 18 months, CDs paying over 4.00% could be an awesome low-risk win.

But if you need fast access to your money, a high-yield savings account is the safer, smarter play.

Either way, don't let your cash sit in an account earning 0.01%.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Joel O'Leary has no position in any of the stocks mentioned. The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy.

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Whenever I get a new credit card, the first thing I do is set up auto-pay.

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It's a no-brainer -- it guarantees I'll never miss a payment by accident, and the bank just pulls the money straight from my checking account.

But choosing the wrong auto-pay settings (or just accepting the bank's default) can cost you big time. If you're not careful, you could end up only paying the minimum due -- while the rest of your balance racks up interest.

Here's how to make sure auto-pay is actually working for you.

Understanding your auto-pay options

When you set up auto-pay, most banks offer a few choices:

• Pay the minimum payment (usually 1% to 3% of your balance)
• Pay the statement balance (everything you owed last billing cycle)
• Pay the current balance (everything you owe up to that time)

If you're not paying attention, it's really easy to choose "minimum payment." But this means over 95% of your statement rolls over to the next month. Next, interest is charged, typically compounding daily, and things get ugly real quick.

Best practices when setting up auto-pay

Here are a few tips for when you set up auto-pay:

1. Choose "pay statement balance" (if possible). This pays off what you owed last cycle, on time, every time. You'll avoid paying any interest, and you don't need to pay for today's new purchases yet.
2. Set up "pay current balance" if you're a heavy spender. This will pay everything you owe -- including recent charges -- so you're fully caught up. As a side benefit, this keeps your credit utilization as low as possible, which helps your credit score.
3. Double-check your bank's default setting. Before finalizing, make sure you're not accidentally locked into minimum payments.
4. Set a reminder a few days before due dates. Even with auto-pay, it's smart to eyeball your checking account balance and make sure you've definitely got the funds to cover your payment.

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What happens if you only pay the minimum

Here's an example of the consequences of only making minimum payments:

My wife and I usually put about $3,500 a month on our credit cards. Let's say we only paid the minimum -- maybe 2% of the balance, or about $70.

The rest of the balance would roll over and start racking up interest. My credit card APR sits at about 22% right now, so this means I'll pay $63 in interest the first month.

And if we kept rolling that balance over without paying it off? We'd fork over hundreds -- even thousands -- of dollars in interest over the course of a year (while also racking up a ridiculous balance!)

Smart habits, bigger wins

Setting up auto-pay the right way isn't just about avoiding late fees.

It's a key part of building smart credit card habits. Responsible usage keeps you out of debt and puts you in full control of your cash.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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A friend of mine said the safest money move right now is to buy Bitcoin. I nearly spit out my coffee!

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If you're looking for actually safe places to park your money -- the kind with predictable returns and no emotional rollercoaster -- this list is more your speed.

Here are four smart places to stash your cash (no crypto required).

1. High-yield savings accounts

These are like regular savings accounts -- but earn up to 10X the national average interest rate.

High-yield savings accounts (HYSAs) are FDIC insured, and right now can be found with rates as high as 5.00% APY.

But for example purposes, we'll use a more common APY of 4.10% for our calculations. To put this into dollars, here's what earnings could look like after 12 months at various balances:

Unlike my buddy's Bitcoin, there's zero risk to your principal. With FDIC insurance, your money stays safe. Even if the bank goes under, you're protected up to $250,000 per depositor, per institution.

HYSA rates do ebb and flow with the economy and Federal Reserve changes. But movement is slow and often predictable.

2. Certificates of deposit (CDs)

CDs are like the "set it and forget it" crockpot of saving. You lock in a great rate, walk away, and come back to guaranteed growth.

In May 2025, short-term CDs (3- to 12-month terms) are offering rates around the 4.00% mark, with some online banks offering up to 4.65% APY. These are ideal if you anticipate needing access to your funds in the near future.​

On the other hand, you might prefer locking your money in for a longer term and accepting a slightly lower rate. Mid-term CDs (1 year to 3 years) are yielding between 3.25% and 4.00% APY. Locking in these rates now can be a smart move, especially if interest rates decline in the coming months.​

Keep in mind that CDs do come with early withdrawal penalties. So, choose a term that aligns with your financial goals and timeline.

3. Treasury bills (T-bills)

T-bills are like super-safe IOUs from the U.S. government. You give them money now, and they promise to pay you back later, with interest.

As of May 2025, short-term T-bills (three to six months) are yielding around 4.30% APY.

How they work: You buy T-bills at a discount (say, $975), then get the full $1,000 back when they mature in a few weeks or months. That difference is your interest.

One cool thing about T-bills is that the interest you earn isn't taxed at the state or local level -- you only pay federal taxes. This is a big win if you're in a higher tax bracket.

You can buy T-bills straight from TreasuryDirect.gov, or invest through a brokerage.

4. Money market funds

Imagine taking CDs, T-bills, and other super-safe investments and smooshing them together into one big fund. That's basically what a money market fund is.

You get to spread your risk across many different short-term assets, and reap the blended yield of everything.

In May 2025, many money market funds are paying between 3.45% and 4.24%.

Something to check with your current broker: Many firms automatically "sweep" your uninvested cash into one of these funds. This is a great feature to earn the most on your cash while it's sitting idle.

Read all about one of our favorite brokers that does this and learn how its low fees and simple approach make it a great choice for protecting your savings.

Keep it boring (and safe)

If you're like me -- and not taking financial advice from your Bitcoin-loving buddy -- then you know that boring and proven methods are a better way to keep your cash safe.

HYSAs, CDs, money market funds, and T-bills all offer steady, low-risk returns that won't keep you up at night.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Discover Financial Services is an advertising partner of Motley Fool Money. Joel O'Leary has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool recommends Barclays Plc, Discover Financial Services, and Flow. The Motley Fool has a disclosure policy.