Right now, strategic investors are maximizing their cash holdings through diversified approaches to protect against interest rate fluctuations or persistent inflation, whatever the future may hold.
With five main strategies, cash is back in the investor spotlight as a winner.
1. Money Market Accounts Combine Flexibility with High Returns
Money market accounts have emerged as powerful cash management tools, offering higher interest rates than traditional savings while maintaining easy access to funds.
These accounts typically provide check-writing privileges and debit card access, combining the benefits of checking and high-yield savings accounts.
Many money market accounts now offer rates typical savings accounts, zero account opening or minimum balance requirements, and zero monthly fees. This combination of liquidity and competitive returns makes them particularly attractive for investors who need growth potential and regular access to their funds.
Pro Tip: If you’ve got more than $100,000 in savings, get some advice from a pro. SmartAsset offers a free service that matches you to a vetted, fiduciary advisor in less than 5 minutes.
2. Certificate of Deposit (CD) Ladders Generate Steady Income
