By Ash Ahmed, founder of Axal. Updated October 2026.
High-yield savings accounts are a great home for cash, but they're not the only option. Depending on when you need the money and how much risk you can take, these alternatives can earn more, lock in a rate, or cut your tax bill.
| Option | Typical top rate | Access to money | Protection |
|---|---|---|---|
| High-yield savings account (baseline) | Up to about 4.2–4.5% APY | Anytime | FDIC insured |
| Money market account | Up to about 3.9% APY | Anytime, often with checks or a debit card | FDIC insured |
| Certificate of deposit (CD) | Up to 4.45% APY for 1 year | Locked; penalty to withdraw early | FDIC insured |
| Treasury bills | About 4.1–4.3% | Held to maturity (4 weeks to 1 year) or sold through a broker | Backed by the US government |
| Money market fund | Usually close to T-bill yields | Anytime through a brokerage account | Not FDIC insured |
| I bonds | Set every 6 months | Locked for 1 year; small penalty before 5 years | Backed by the US government |
| Higher-yield savings apps | About 7.6% APY at Axal; varies by app | Anytime | Not FDIC insured |
1. Money market accounts
A bank account that works like a savings account with some checking features. Rates are a little below the best HYSAs, but you get FDIC insurance and easy access. Best for: an emergency fund you want to reach quickly.
2. Certificates of deposit (CDs)
You lock your money for a set term in exchange for a fixed rate. Top 1-year CDs currently pay slightly more than top HYSAs, and the rate can't drop during the term. You'll usually pay a penalty to withdraw early. Best for: money you know you won't need for a set period, especially if you expect rates to fall.
3. Treasury bills
Short-term loans to the US government, bought through TreasuryDirect or a brokerage. Their interest is exempt from state and local income tax, which can make them worth more than a similar HYSA rate if you live in a high-tax state. Best for: savers in high-tax states with money they can set aside for weeks to months.
4. Money market funds
Funds that invest in short-term government and corporate debt, held in a brokerage account. They usually pay close to T-bill rates and you can sell anytime. They are not FDIC insured, though they're designed to hold a steady $1 share price. Best for: cash you keep in a brokerage account between investments.
5. I bonds
US savings bonds whose rate adjusts with inflation every six months. You can't cash them for a year, you give up three months of interest if you cash them before five years, and you can buy up to $10,000 a year electronically. Check the current rate on TreasuryDirect. Best for: long-term savings you want protected from inflation.
6. Higher-yield savings apps
A newer category of apps, including Axal, pays more than banks by lending your dollars through overcollateralized lending markets instead of through a bank. Axal currently pays about 7.6% APY with no minimums, no fees and no lockups. The trade-off: these apps aren't banks, balances aren't FDIC insured, and they carry software, dollar-peg and market risks a bank account doesn't. Best for: savings beyond your emergency fund, if you understand and accept those risks. Read Is Axal Safe?
Which should you choose?
Many people combine options: an emergency fund in a HYSA or money market account, money with a known date in a CD or T-bills, and only extra savings in higher-risk, higher-yield options.
Rates change frequently and are not guaranteed. This article is for information only and is not financial advice.
Sources: Bankrate CD rates (Oct 4, 2026), Yahoo Finance money market accounts (Sep 1, 2026), FM Invest Treasury rates (Oct 2, 2026), NerdWallet high-yield savings.