Earning interest can be a crucial part of investing it lets you grow your money and meet your financial goals. In periods of high inflation, earning interest is incredibly important. As the Fed continues to raise interest rates to tame inflation, some investments are earning higher rates than others.
Right now, Treasury Bills are returning some of the highest yield rates of 4.50%* in their risk class, making them a particularly appealing option for many investors.
When it comes to deploying excess cash in a low-risk way, many individuals want a high-yield product that keeps their money safe and accessible.
Some of the most popular ways to earn interest are:
Invest in Treasury bills on Public.
Open a Treasury Account on Public and lock in your 4.50% yield today.
These cash alternatives can be an attractive option for your excess cash that can help you earn higher interest rates. Below, well discuss how each of these investments can help you achieve the best yield and highest rate of return.
Treasury Bills, or T-Bills, are short-term government-issued securities. Their maturity dates are short, with periods of as little as 4 weeks to up to 52 weeks. This differentiates Treasury Bills from Treasury Bonds and Treasury Notes, which have longer term lengths.
Short maturity dates (usually less than one year)
No state or local income taxes on earnings
No maximum limit unlike some savings account
More liquidity, thanks to simple purchasing and selling options
Backed by US government
T-Bills arent just one of the safest investments: they can also offer a competitive yield. As of 9/11/24, Treasury Bills offer an interest rate of 4.50%*. Buying T-bills is easy all you need is a Treasury Account from Public and youll be ready to earn on your cash.
Treasury bill ladders address two of the major issues with T-bills: their set return periods and interest rate risk. Heres how T-bill ladders work: rather than investing a chunk of cash in a single bill, investors spread that cash across several bills with varied maturity dates. As each bill matures, investors can reinvest that cash in a future bill with a later maturity.
Investors hoping to take advantage of T-bills high interest rates and low risk can purchase T-bills at Public with a Treasury account in just three easy steps
Your investments at Public are automatically insured for upto $500,000 through the SIPC and you can request for additional insurance coverage if your balance exceeds the limit
All savings accounts earn interest, but the type of savings account you choose can affect your interest rate. High-yield savings accounts offer an annual percentage yield, or APY,
High-yield savings accounts can be opened at a variety of banks, but the highest rates tend to come from online banks. However, keep in mind that some banks limit withdrawals or require that you maintain a minimum balance. Its also important to remember that, For the highest impact, the interest rate on these savings accounts needs to outpace inflation.
Earn a higher yield than a high-yield savings account
Get a 5.0% yield when you move your cash into a Treasury Account on Public.
Rewards checking accounts earn you cash back on debit card purchases while also offering a high interest rate.
Rewards checking accounts are often a comfortable option for individuals who prefer using a debit card over a credit card, but still want the rewards that often come with credit cards. A range of banks, credit unions, and other financial institutions offer these accounts, and opening a Rewards Checking Account is typically simpleits just a matter of finding the best account for your circumstances.
However, these accounts vary in terms not only of interest earnings, but also in terms of snags like balance requirements and monthly fees. Before opening an account, you should research the best Rewards Checking Accounts for your individual needs.
A Certificate of Deposit is an account in which cash is held for a fixed period, and typically at a fixed interest rate. While these have generally competitive interest rates, they also carry a disadvantage: investors cannot make withdrawals for a given period without penalty, limiting liquidity and flexibility.
CD ladders solve this problem by letting you stagger your CD term lengths. When one matures, you can cash out, or reinvest that money into a CD with a later maturity.
Many financial institutions offer CDs, and theres no need to pick just one. Many investors choose the best Certificate of Deposit for each specific term length, investing at different banks and credit unions.
There are several factors to consider when choosing the right account for your cash:
As interest rates continue to rise, assets that are pegged to the Feds central rate are a popular option with many investors. If youre looking for a low-risk way to lock in a guaranteed interest rate, Publics Treasury Account may be a good option for you. With a 4.50%* interest rate (as of 9/11/24) and the full backing of the US government, treasury bills are a safe way to save for the future.
Invest in Treasury bills on Public.
Open a Treasury Account on Public and lock in your 4.50% yield today.
The best way to earn interest while ensuring easy access to your money is with a liquid investment account like a Treasury Account from Public or a HYSAs or rewards checking account.
There are several factors to consider, including:
If inflation outpaces your interest rate, there’s a chance you’ll lose money. However, low-risk options like T-bills, which are backed by the US government can help you earn comparatively higher rates, minimizing the risk of fixed assets.
Many investors choose a convenient low-interest account when higher-earning options are available. Shop around and find the best option for you.
