100K in Savings: Maximizing Returns While Maintaining Safety and Accessibility

When you have over $100,000 in savings, leaving it idle in a traditional savings account can result in loss of value due to low interest rates failing to keep pace with inflation. To maximize returns while maintaining safety and accessibility, there are various low-risk options available. A high-yield savings account offers easy access to funds and FDIC insurance up to $250,000 per depositor, per insured bank. Money market accounts combine the features of savings and checking accounts, offering check-writing capabilities, ATM access, and higher interest rates than traditional savings accounts, although they may have higher minimum balance requirements. Jumbo CDs, requiring a minimum deposit of $100,000 and longer terms, offer higher interest rates than traditional CDs. For those with a higher risk tolerance, short-term notes, such as Basecamp Alpine Notes from EquityMultiple, offer potentially higher yields. It is crucial to spread funds across multiple banks or account types to ensure full protection by the FDIC insurance limit. Speaking with a financial advisor can provide personalized guidance based on specific financial goals and risk tolerances. Alternatively, the Cityfunds Yield fund, with a five-year term and guaranteed floor of 7%, may be a suitable option for locking in a high APY for a longer period. In light of current high-yield rates, it is possible these rates may decrease in the near future. Ultimately, selecting the appropriate placement for additional cash depends on individual circumstances and preferences.