Best Places to Save Money & Earn Interest 2023

Find the best savings, CD, and investment accounts for your financial goals based on interest rates (APY), fees, and more.
Written by Anna Baluch
Financial Expert
Managing Editor

Whether you hope to build an emergency fund, buy a new car, go on vacation, or retire, various savings products are at your disposal.

However, the ideal place for your savings will depend on your unique situation.

Below we’ll take a closer look at the best places to save money and earn interest so you can meet (or even exceed) your savings goals.

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Savings Accounts

savings account is a deposit account that offers a convenient way to save money. In most cases, it earns a competitive interest rate and is federally insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000.

While you can access the money in a savings account easily, restrictions usually limit the amount of withdrawals or outgoing transfers you can make per statement period. The typical limit is six, and if you exceed it, you’ll likely be hit with a fee.

Since it’s so liquid, a savings account is a great place to store your emergency fund or save for a car or vacation.

Find the Best Savings Account Rates

Use our search tool to find the best savings accounts to meet your needs. Try it now to see which savings accounts offer the highest rates.

How Savings Accounts Earn You Money

When you hold money in your account, you earn interest on your money. That interest is compounded, which means that once you earn interest, you not only earn interest on your principal, you also earn money on the interest.

You can use a compound interest calculator to explore different scenarios and get an understanding of how much money you can earn based on how much money you have in your account.

How Savings Accounts Work

You can open a savings account at an online or in-person bank, credit union, or other financial institution.

Once you do, you may deposit funds as you wish and receive interest on your balance. The more money you keep in your savings account, the more you’ll earn in interest.

Most savings accounts let you add money via cash, check deposits at ATMs or branches, ATM transfers, wire transfers, mobile check deposits, and direct deposits.

When you open your account, the financial institution might confirm your account by making a few test deposits, which you’ll need to verify. In general, it’s quick and easy to open and maintain a savings account.

Pros and Cons of Savings Accounts

Savings accounts are better for some people than others. Learn some advantages and drawbacks of savings accounts below.

Compare Savings Accounts

Compare some popular savings accounts. Compare accessibility, fees, and more.

Citibank Savings

Citibank Savings offers perks like overdraft protection of up to $10 per day and an auto-save program, which lets you automate your savings efforts. You can easily access your funds online, at an ATM, or in person at a local Citibank branch.

Quontic Savings

Quontic Savings comes with a competitive interest rate and APY as well as no monthly service fees. You can open an account with as little as $100 and enjoy access to over 90,000 surcharge-free ATMs.

UFB Savings

UFB Savings provides a competitive APY to balances of $10,000 and doesn’t require a minimum deposit. Plus, there are no service fees, and you’ll receive a complimentary ATM card for deposits and withdrawals.

U.S. Bank Savings

U.S. Bank Savings allows you to avoid the service fee if you keep at least a $300 daily balance or $1,000 average monthly collected balance in the account or hold the account jointly with a child under 18. There’s also a rewards program.

Investment Accounts

Investment accounts are used for long-term goals, like sending your child to college or retiring. If you invest your money, you assume some risk as there is no guaranteed rate of return. While you may lose some or all of the funds you invest, you also have the potential to earn more than you would in a traditional savings account.

Not all investment accounts are created equal. You can choose from many, such as demand deposits, certificates of deposit (CDs), balanced funds, and robo-advisors. You can open multiple investment accounts to meet various financial goals.

Find the Best Investment Accounts

Finding the best investment account is as easy as using our search tool. Try it now and find an investment account that meets all your needs.

How Investment Accounts Earn You Money

Investment accounts earn money through various mechanisms, depending on the type of account and the investments held within it.

Here are a few common ways investment accounts can generate returns.

Capital appreciation

When you invest in assets like a 401(k), stocks, bonds, real estate, or mutual funds, their value can increase over time. This is known as capital appreciation.

You earn a profit if you sell these investments at a higher price than what you paid for them.


Some stocks pay dividends, a portion of the company’s profits distributed to shareholders.

When you own shares of such dividend-paying stocks, you receive regular payments, either in the form of cash or additional shares.

Interest income

Bonds, mutual funds, and other fixed-income securities generate interest income. When you invest in these instruments, you lend money to the issuer, which pays you regular interest payments over the investment period.

You typically receive the principal amount back at the end of the investment term.

Capital gains

You realize a capital gain when you sell an investment for more than its original purchase price. This applies to various assets like stocks, mutual funds, real estate, and collectibles. Capital gains can contribute to your investment returns.

Investment returns are subject to market risks and fluctuate. The performance of your investment account depends on factors like economic conditions, industry trends, and specific investment choices.

Additionally, fees and taxes associated with investment accounts can affect overall returns.

An investment calculator can help you try out different scenarios to see how much money you can earn on your investment accounts.

Consulting with a financial advisor or doing thorough research before making investment decisions is generally recommended.

How Investment Accounts Work

Each investment account works slightly differently, but they generally abide by the same basic principles.

In a traditional investment account or brokerage account from an online broker, you deposit cash and use it to purchase stocks, bonds, mutual funds, exchange-traded funds (ETFs), and other investment assets.

Depending on the account, you might have to meet a minimum balance and pay management fees or trading commissions. Typically, you’ll keep your money in an investment account for years to achieve long-term goals.

Pros and Cons of Investment Accounts

Get to know more about investment accounts by learning their benefits and drawbacks.

Compare Investment Accounts

Some investment accounts to put on your radar include the following.

Facet Wealth

Facet Wealth is a virtual financial planning firm. If you invest with them, you can enjoy a flat-free structure and low-cost ETFs, mutual funds, stocks, and bonds. The firm strives to reduce expenses that can detract from your investment goals.

JP Morgan

JP Morgan offers several investment accounts you can choose from, such as self-directed accounts, like traditional IRAs and Roth IRAs, automated investing with a robo-investor, and one-on-one investing with a financial professional via video chat or in-person.


Robinhood is an investing app that targets beginner investors. You may use it on your mobile device without meeting a minimum balance requirement. It lets you trade cryptocurrency and offers free stock options.


SoFi Automated Investing is designed to simplify investing. It can help you create a portfolio based on factors like your age, risk tolerance, and goals. Best of all, there’s no account management fee.


Vanguard Financial Advisor Services offers personal advisor services if you have assets over $50,000. There are also Vanguard Digital Advisor Services, which are essentially robo-advisory services that build low-cost portfolios.

Real Estate Investment Trusts

Real estate investment trusts (REITs) allow everyday people to own real estate holdings. REITs usually own and operate income-generating properties, such as office buildings, shopping malls, apartments, hotels, warehouses, self-storage facilities, and more.

It’s important to note that, unlike some real estate firms, REITs don’t develop properties to resell them.

There are three major REIT types: equity REITs, mortgage REITs, and hybrid REITs. They’re usually registered with the US Securities and Exchange Commission (SEC) and made up of pooled investments from multiple shareholders.

Find the Best REITs

Try our search tool to find the best REIT for your needs. Learn more about REITs and how to get started investing in real estate.

How REITs Earn You Money

REITs generate returns for investors through the ways discussed below.

Rental income

REITs typically own and lease out various types of properties, such as office buildings, apartments, shopping centers, warehouses, and hotels.

The primary source of income for REITs is the rental payments received from tenants. The rental income is then distributed to REIT investors as dividends.

Capital appreciation

Similar to other types of real estate investments, REITs can experience capital appreciation. If the value of the properties held by the REITs increases over time, the net asset value of the REIT also grows.

Investors can benefit from this appreciation if they sell their shares at a higher price than their initial investment.

Dividend distributions

REITs must legally distribute a significant portion of their taxable income as dividends to shareholders. These dividends are generally paid regularly, such as quarterly or annually. REIT dividends can be attractive for investors seeking regular income streams, as they can provide a consistent cash flow.

Portfolio growth

As a REIT grows and acquires additional properties, its rental income and potential for capital appreciation can increase. Successful REITs may expand their property portfolios over time, which can lead to higher returns for investors.

Specialized REIT structures

Some REITs specialize in specific sectors or niches within the real estate market, such as healthcare properties, data centers, or timberland.

These specialized REITs may earn money through clear revenue streams unique to their sector. For example, healthcare REITs may earn income from lease payments by healthcare providers.

How REITs Work

If you’d like to invest in a publicly traded REIT, you can purchase shares through a stockbroker.

You may opt for common stock, preferred stock, or debt security of publicly traded REITs. Another option is to buy REITs registered with the SEC but not publicly traded through a broker or financial advisor.

In addition, you may invest in shares in a REIT mutual fund or REIT exchange-traded fund via a mutual funds company like Vanguard, Charles Schwab, or Fidelity.

Pros and Cons of REITs

As with any investment, REITs have distinct advantages and disadvantages. We've included some below.

Compare REITs

Learn more about REITs by checking out some of the more popular ones. Here are a few REITs to explore.


Crowdstreet is an online real estate investment platform. You can use it if you have at least $25,000 to invest and are an accredited investor. With Crowdstreet, you may invest in commercial properties via diversified funds, individual offerings, and tailored portfolios.

First National Realty Partners

First National Realty Partners is a private equity firm and commercial real estate investing platform for accredited investors. It’s unique in that it focuses on grocery-anchored real estate.

You can also invest with its Opportunity Fund and own shares in all of its deals to diversify your portfolio.

Realty Mogul

RealtyMogul is an online investment platform that strives to connect everyday investors with commercial properties. You can use it regardless of if you’re an accredited or unaccredited investor to invest in real estate offerings and REITs.

Certificates of Deposit

Certificates of deposit, or CDs, are designed to pay a fixed interest rate for a specific time, known as a term.

With a CD, you keep your money in an account until it matures. You’ll lock in an interest rate and enjoy predictable returns.

While CD terms vary, most range from a few months to five years. Typically, the longer you keep your money in a CD, the higher ROI you can expect.

If you tap into your CD funds early, before the term ends, you may be on the hook for an early withdrawal fee.

Find the Best CDs

Use our robust search tool to find the best CDs with the rates and terms you need.

How You Earn Money on a CD

The interest rate is predetermined and often higher than in traditional savings accounts.

By depositing your money into a CD, you agree to keep it locked for the specified term, ranging from a few months to several years. You receive the principal amount and accumulated interest at the end of the period.

The longer the term and the higher the interest rate, the more money you can potentially earn from CDs.

How CDs Work

A CD is a lot like a contract. You agree to store your funds in an account. After a set time or term is up, you receive your money plus interest.

The interest rate is typically fixed, and you agree to it when you open a CD. However, there are CDs with variable rates.

In most cases, you can quickly open a CD through a bank, credit union, or online lender. Sometimes, there’s a minimum deposit requirement and fee for accessing your money early.

Pros and Cons of CDs

A few of the most striking benefits and drawbacks of CDs are as follows.

Compare CDs

If you’re looking for a safe place to put your money and earn some decent interest while you’re at it, you might want to consider these places for CDs.


CIT Bank offers a few types of CDs to meet various customer needs. These include term CDs, jumbo CDs, no penalty CDs, and RampUp CDs. Most options come with a minimum opening requirement.


At Marcus by Goldman Sachs, you can find a no-penalty CD and withdraw the money you deposited seven days after you open it without paying a penalty. A $500 minimum deposit and terms range from seven to 13 months.


Synchrony’s online CDs come with a term between three to 60 months. To open one, you must make a minimum deposit of $2,000. There’s an early withdrawal penalty if you tap into the money before your term ends.

U.S. Bank

U.S. Bank offers a CD special that lets you lock in its best rates. You can enjoy an even better rate if you’re a U.S. Bank customer. You’ll need a minimum deposit of $1,000 to take advantage of it.

About Author
Anna Baluch
Anna Baluch has been writing about personal finance for more than seven years. She has written extensively on personal and student loans, mortgages, debt relief, auto financing, budgeting, banking, and more. Anna was featured on the "Burn Your Mortgage" podcast in July 2019, where she discussed how she paid off her mortgage in just 16 months. Anna's work has appeared on well-known personal finance websites including LendingTree, Business Insider, Credit Karma, Experian, Freedom Debt Relief, Rocket Mortgage, Policygenius, U.S. News & World Report, American Express, and more.