Overview: Best investments in 2023

• High-yield savings accounts
  • Overview: A high-yield online savings account pays you interest on your cash balance. And just like a savings account at your brick-and-mortar bank, high-yield online savings accounts are accessible vehicles for your cash.
  • Who are they good for? A savings account is a good vehicle for those who need to access cash in the near future. A high-yield savings account also works well for risk-averse investors who want to avoid the risk that they won’t get their money back.
  • Risks: Many of the banks that offer these accounts are FDIC-insured, so you won’t have to worry about losing your deposits as long as you stay within federal insurance limits.
  • While high-yield savings accounts are considered safe investments, like CDs, you do run the risk of losing purchasing power over time due to inflation, if rates are too low.
  • Rewards: With fewer overhead costs, you can typically earn much higher interest rates at online banks than you would at a traditional brick-and-mortar bank.