Have you been thinking about opening a CD and locking in a high APY? The best CDs right now are paying 5.00% APY or more. But here's the thing about CDs: you have to lock up your money, often for a year or more if you want good rates. What if there was another way to earn yield on your savings?
If you have some cash that you're willing to commit to a CD, you should check out Save (joinsave.com), an innovative fintech company that helps people get higher yields on their savings. Save could be a "CD killer" -- a new category of investment account for anyone willing to open a CD and commit their money for one year or longer.
If you're impressed by CD rates, you should check out Save. Let's see how Save's investment programs compare with the best CDs -- and why investing with Save could be an even better deal for your savings.
Save's Market Savings program: 9.07% variable APY
If you're considering opening a 1-year CD, you might have noticed that some of the best CDs with a 12-month term are offering 5.00% APY or higher. What if you could do even better than that? Save offers a Market Savings program with a one-year commitment, like a 1-year CD. But instead of a fixed rate of interest, Save can potentially help you earn higher yields than the best CDs.
Our Picks for the Best High-Yield Savings Accounts of 2024
SoFi Checking and Savings
APY up to 4.60% Rate infoYou can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet. Min. to earn $0 Open Account for SoFi Checking and Savings Member FDIC. | APY up to 4.60% Rate infoYou can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet. | Min. to earn $0 |
Citizens Access® Savings
APY 4.50% Min. to earn $0.01 Open Account for Citizens Access® Savings Member FDIC. | APY 4.50% | Min. to earn $0.01 |
American Express® High Yield Savings
APY 4.25% Rate info4.25% annual percentage yield as of June 6, 2024 Min. to earn $1 Open Account for American Express® High Yield Savings Member FDIC. | APY 4.25% Rate info4.25% annual percentage yield as of June 6, 2024 | Min. to earn $1 |
How the Save Market Savings program works
- You open an account with Save.
- You deposit cash into a bank account with Save's partner bank (FDIC insured).
- Instead of earning traditional savings account interest, Save helps you earn yield with investments in a diversified portfolio of stocks, bonds, and other assets. (Save will recommend a portfolio for you, based on your preferences, goals, and risk tolerance.)
Save serves as your fiduciary financial advisor. Save's investment programs work similarly to a robo-advisor, but instead of a brokerage account, it's for your cash savings. And with Save's Market Savings program, your deposits are never at risk -- you always have the safety of FDIC insurance. Keep in mind that with the Save Market Savings program, you must commit your money to a one-year investment term -- similar to the commitment of a 1-year CD.
How much can you earn with Save's Market Savings program?
Save Market Savings has a variable APY of 9.07%, based on historical returns in Save's S&P 500 Risk-Controlled Portfolio, 2009 to present.
Let's see how the Save Market Savings returns compare to the best 1-year CDs:
| National Average 1-Year CD | Best 1-Year CD | Save Market Savings program | |
|---|---|---|---|
| Deposit amount | $10,000 | $10,000 | $10,000 |
| APY | 1.80% APY | 5.15% APY | 9.07% variable APY |
| Earnings after 1 year | $180 | $515 | $907 |
Data sources: FDIC survey data, author's calculations.
Keep in mind that, while CD rates are fixed, Save's variable APY is not guaranteed. If your investments do not perform as well as previous market results, you might not get that full 9.07% yield. But if you want more than the usual CD yields, Save can potentially deliver higher returns on your savings -- without the risk of losing your deposits.
Save's Market+ investment program: A 3-year commitment
Another option from Save is its Market+ investment program. While the Save Market Savings program is potentially a good fit for everyday savers who might otherwise consider opening a CD, the Market+ investment program is more for savvy investors.
That's because Market+ requires a three-year minimum commitment. It's similar to the best 3-year CDs in that way -- don't choose this account unless you can confidently commit your money for three full years. But here's what makes Market+ special: it's a principal-guaranteed investment program.
If you commit your money for three years with Market+, you can choose to receive 3.00% or 4.20% of guaranteed annual return. That's already competitive with the best 3-year CDs. And on top of that, your investments with Save can earn additional variable market-linked returns.
Here's how Save estimates that your investments might perform, based on your choice of Market+ program:
- 3.00% guaranteed annual return + variable market-linked return = 9.24% total variable APY; or:
- 4.20% guaranteed annual return + variable market-linked return = 7.75% total variable APY
The variable market-linked returns are not guaranteed; Save's advertised APYs for this program's average variable market-linked returns are based on the Save S&P 500 Risk-Controlled Portfolio's historical performance, and not all Save portfolios will have the same APY.
Let's see how much you could earn with these total variable APYs from Save Market+, compared to the best 3-year CDs:
| National Average 3-Year CD | Best 3-Year CD | Save Market+ (4.20% Guaranteed Annual Return) | Save Market+ (3.00% Guaranteed Annual Return) | |
|---|---|---|---|---|
| Deposit amount | $10,000 | $10,000 | $10,000 | $10,000 |
| APY | 1.42% APY | 4.40% APY | 7.75% variable APY | 9.24% variable APY |
| Earnings after 3 years | $432 | $1,379 | $2,509.84 | $3,036.02 |
Data sources: FDIC survey data, author's calculations.
Bottom line
Anyone who's considering a 1-year CD should check out Save's Market Savings program. And if you're a savvy investor with a decent amount of medium-term cash, consider Save Market+ for a three-year principal guaranteed investment program that could give you extra market-linked upside, along with guaranteed annual returns that are competitive with the best 3-year CDs.
These savings accounts are FDIC insured and could earn you 11x your bank
Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts could earn you 11x the national average savings account rate. Click here to uncover the best-in-class accounts that landed a spot on our short list of the best savings accounts for 2024.
