A smart personal finance strategy often involves earning some interest on your money while not taking on too much risk. These days, high-yield savings accounts are one viable option, with top rates reaching up to 4.50% APY — significantly outpacing the current inflation rate of 2.4%.
In addition to savings accounts, there are plenty of other relatively safe ways to get a return on your funds, whether it’s through other interest-earning accounts, rewards, bonuses or stable investments.
In all, here are seven low-risk strategies to consider in 2025 to make your money work harder for you.
1. Switch to a high-interest savings account
Some banks offer high-interest savings accounts that earn significantly better rates than traditional accounts.
One of the best places to look for high-interest savings accounts is an online-only bank. Online banks, which save significant costs by not having to maintain branches, rarely charge monthly fees. They also typically offer rates that are much higher than those paid by traditional banks.
When searching for a high-yield savings account, don’t just focus on the headline rate. You’ll also want to look at any minimum balance requirements, monthly maintenance fees and how often the bank adjusts its rates in response to Federal Reserve moves.
— Hanna Horvath, CFP & Banking Editor at Bankrate
The best high-yield savings accounts currently earn an annual percentage yield (APY) of up to 4.50% percent. This is around seven to eight times the Bankrate national average rate of 0.59 percent as of May 2025.
Based on these rates, if you deposited $5,000 into one account that earns the top yield and another that earns the national average, here’s approximately what it would earn in interest after one year:
- Interest on an account that earns 5.00 percent APY: $225
- Interest on an account that earns 0.59 percent APY: $29.50
You’d earn around $200 more by going with the high-yield savings account.
Bankrate’s compound interest calculator allows you to plug your investment amount, timeframe and projected rate of return to see how much your savings can earn.
2. Consider a rewards checking account
Some banks offer rewards checking accounts, which may earn cash back on things you buy with your debit card. Those who make frequent purchases using a debit card would benefit the most from this type of checking account.
Other rewards checking accounts pay higher interest rates, although the balance that earns the elevated rate is often limited. You may also need to jump through some hoops to earn the bonus rate.
For example, Consumers Credit Union (CCU) offers interest rates as high as 5 percent APY on balances of up to $10,000 for its Rewards Checking account. However, to earn that yield, you’ll need to meet all the following requirements:
- Sign up for electronic statements.
- Make at least 12 debit or credit card purchases per month.
- Receive $500 or more in direct deposits, mobile check deposits or ACH credits to the account monthly.
- Spend more than $1,000 on a CCU credit card monthly.
If you choose to use a rewards checking account, make sure that the requirements to earn the elevated interest rate are easy for you to meet. Otherwise, you might earn less interest than you would with a standard savings account.
3. Consider certificates of deposit
Certificates of deposit (CDs) typically offer higher interest rates than traditional savings accounts. However, there’s less flexibility to withdraw your money from a CD.
When you put funds into a CD, you have to agree to leave the money in the account for a set period of time, called the term. For example, if you open a one-year CD, you have to leave the money in the account for a full year. If you withdraw your deposit before the term expires, you are subject to an early withdrawal penalty.
As of May 2025, the top CD rates range from 4.40% to 4.60% APY, depending on the term length:
- Short-term (3-6 months): 4.40-4.50% APY
- Mid-term (1-2 years): 4.50-4.60% APY
- Long-term (3-5 years): 4.50-4.60% APY
One benefit of CDs is that you lock in the interest rate when you open the CD. Even if market rates drop, you’ll keep earning the same rate. On the other hand, if rates rise, you’ll be stuck earning the lower rate until the CD matures.
Once the CD term ends, you can withdraw your money or roll it into a new CD. If you roll the balance into a new CD, you have to wait for that CD to mature before having another opportunity to make a penalty-free withdrawal.
When considering CDs, one option to explore is a CD ladder. This consists of opening several CDs with different maturity dates. The benefit is that you can earn high rates and also have access to portions of your money at frequent intervals.
Bankrate’s CD ladder calculator can help you build a CD ladder that’s right for you.
4. Take advantage of bank bonuses
Many banks offer introductory bonuses to new customers who sign up for an account and meet a few requirements. Usually, checking account bonuses require you to set up regular direct deposits and make a minimum number of transactions each statement period.
For people with some savings already set aside, bank account bonuses can be an easy way to increase their earnings. These bonuses typically ask new customers to deposit a minimum amount into the account and keep it there for a certain period of time. In short, you could boost your savings balance by opening a new account and funding it with savings held at another bank.
For example, you might see a bonus offering $300 if you deposit $10,000 and maintain that balance in the account for at least three months. Earning such a bonus would be equivalent to earning a 3 percent APY in a savings account for a year (assuming the APY didn’t fluctuate and you didn’t add money to the account or withdraw from it).
Even larger bonuses of $400 and $500 are available from some banks, although higher minimum deposits are usually required to earn them. Here’s a list of the best bank account bonuses on the market today.
Be sure to read all the fine print. Some banks will charge a fee if you don’t meet certain requirements or try to close the account too quickly after opening it. Some banks might even make you forfeit the reward if you close the account soon after getting the bonus.
5. Try a money market account
Money market accounts offer a mixture of the features found in savings and checking accounts. They pay interest, sometimes at higher rates than high-yield savings accounts, while commonly offering check-writing privileges and debit cards that you can use to make withdrawals, with some restrictions.
Currently, the top money market account rates reach up to 4.40% APY, while the national average is just 0.47%. Like high-yield savings accounts, the best rates are often found at online banks.
The drawback of money market accounts is that they may have higher fees and minimum balance requirements than savings accounts. There’s also no guarantee that your bank’s money market account pays a better rate than its savings account.
6. Check with your local credit union
Unlike banks, credit unions are not-for-profit financial institutions owned by the people who hold accounts there. This means credit unions work for the benefit of account holders instead of shareholders.
In some cases, that can translate into lower fees, better account perks and higher interest rates. If you have a credit union near you, check the rates it offers, as you might be able to get a good deal.
If you don’t live near any credit unions and tend not to do any of your banking in person, consider a credit union that allows you to perform all of your banking transactions online.
While some credit unions are relatively easy for anyone to join, others are only open to people who live in a certain region or work in a given industry. Check out our list of best credit unions.
7. Consider buying government bonds
If you don’t mind a little risk or restriction on your withdrawals, you can put your money into bonds instead of a traditional savings account.
Buying a bond is like making a loan to the company or government that issues it. When the bond matures, you get your principal back plus any interest you earn. You can buy U.S. Savings or Treasury bonds, or bonds issued by major companies.
Each has different interest rates and repayment terms, with riskier bonds tending to offer higher rates. Typically, yields are higher on bonds with longer terms and corporate bonds that have higher default risk.
One thing to keep in mind with bonds is that they can drop in value if market rates increase. (The price of a bond moves inverse to its interest rate.) As a result, if you wind up selling your bond to someone else before it matures, you might have to sell it for less than you paid. Still, bonds are far less risky than stocks, making them a good way to increase the yield your savings earn while taking a little more risk.
Series I savings bonds, or I bonds, are government bonds designed to protect your investment from inflation. The composite rate for I bonds issued from November 2024 through April 2025 is 3.11%, which includes a fixed rate of 1.20% plus an inflation-adjusted rate of 1.90%.
Which option is right for you?
Each of these options has the potential to increase the amount of interest your savings earns. But which interest-bearing option is right for you depends on your needs, risk tolerance and the effort you’re willing to put in. Ask yourself these questions:
Will I possibly need quick access to the money? If you’re working to build up an emergency fund, your best bet is often to stick with a high-yield savings account where you can withdraw the money anytime without a penalty.
Rather, if you’re saving for the planned purchase of a house in several years, a CD that pays a competitive yield can be a good investment. Another option for money not needed in the near term could be higher-yielding bonds, which are likely worth holding onto until after they mature.
How much debt do I have? If you already have an adequate emergency fund, consider focusing on paying down any high-interest debt before devoting additional funds to other investments.
Am I able to make the required commitment? Sometimes, a bit of effort and attention to detail are needed. For instance, bank bonuses can be very lucrative, but they often require you to take multiple steps to earn the bonus.
Bottom line
Earning interest in a low-risk way is often possible through vehicles such as high-yield savings accounts, money market accounts, CDs, bonds and bank bonuses. With today’s rates ranging from 4 to 5 percent on many of these options — well above the current inflation rate — 2025 is an excellent time to make sure your cash is working as hard as possible for you.
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