The national average savings account interest rate is shockingly low. Here’s where you should put your money instead:

There are many reasons to put money in a savings account, including saving for emergencies or short-term goals. If you need money soon, saving it rather than investing it in a brokerage account is the right move. You cannot afford to take the risk of loss if your investment timing is bad.

It’s a good idea to keep your funds in an accessible savings account at a bank or credit union, but here are the national average interest rates for these accounts: very low. In fact, according to the FDIC, this rate is only 0.46%. This means that any money you have in your savings account paying the national average interest rate will likely lose ground because it won’t keep up with inflation (price increases that occur over time).

So what must Are you living off of money you need to save for short-term goals? There are two options:

Put your money into a high-yield savings account

If you need to have your money ready to go at any time, a high-yield savings account may be best for you. While the national average savings account interest rate is very low, high-yield savings accounts are different. They often pay much higher interest rates, with some accounts currently offering yields of up to 5.32%.

Depending on how much you have invested, you’ll want to shop around to find the best savings account rate (some banks only pay the highest rates if you maintain a certain balance amount). Of course, make sure the account is FDIC insured so you don’t face any risks. Almost all savings accounts at major financial institutions and most online banks are FDIC insured, but you can use the FDIC’s BankFind tool to check.

One downside to be aware of is that savings accounts have variable interest rates, so if interest rates fall over time, the interest rate you’re currently paid may go down. But high-yield savings accounts always You’ll pay better rates than the national average. There’s no reason ~ no Shop around and find an account that is as competitive as possible. This is especially true if you have a significant amount of money saved for emergencies.

Buy a Certificate of Deposit

There is also another option. You can buy CDs. Certificates of deposit also come with FDIC insurance, so there is no risk of loss. The national average CD interest rate is higher than the national average savings account interest rate. It is absolutely possible to find truly competitive rates of return, with the best CD rates coming in at 5.55%. This means they’ll beat high-yield savings accounts, too.

Now here’s the possible downside. CDs require you to commit to keeping your money invested for a set period of time (usually between three months and five years, depending on the CD term you choose). So you’ll only want to invest your money in one of these if you’re 100% sure you won’t need it during that period and you won’t need to take it out early. Early violation of the CD term may result in penalties.

If you’re saving for a mid-term goal, like taking a vacation in one year or buying a house in three years, CDs can be a great way to get the highest return on a risk-free investment. CD interest rates are also guaranteed for the entire CD term and do not fluctuate like savings account rates. So if you think interest rates will soon fall, that’s another reason to use some of your savings to buy a CD.

Ultimately, both of these options can be much better than putting your money in a savings account that pays the national average interest rate. Check out our high-yield savings accounts and CDs today to see if one is right for you.

This savings account is FDIC insured and can earn 11 times the bank’s earnings.

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