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[[{“value”:”Image source: The Motley Fool/Upsplash
If you’ve been basking in the sun of high savings APYs, you might be disappointed that the Fed’s started to cut rates. However, I’d argue the changing tides are actually an opportunity. Top CDs offer rates near 5%, which is solid. But these rates can distract people from other higher-paying investments.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. Depending on when you might need to touch your money, here are three better places to park your cash.1. Invest in the S&P 500There is a difference between investing and saving. Investing is riskier but has the potential to generate higher returns over time. For example, the S&P 500 — which tracks the performance of 500 of the biggest U.S. companies — has generated average annual returns of around 8%.If you were to invest $1,000 a month for 30 years, being able to earn annual returns of 8% would give you over $550,000 more than a CD paying 5%.Savings are a safe place to put cash you might need in the near term. Both savings and investments are essential if you want to build wealth. So before you invest, make sure you have three to six months’ worth of living expenses in a high-yield savings account. Think of it as your safety net in case things go wrong.In the market for a high-yield savings account to stash your emergency fund, but not sure where to start? Check out this list of our favorite high-yield savings accounts to open one and get started saving today.Once you’re good on emergency savings, check out ETFs that track the S&P 500. The index has a strong track record and you don’t need to worry about picking individual stocks. ETFs are often a great low-fee way to get exposure to a particular index, industry, or other group of assets.2. Invest in REITsREITs are companies that own and manage a mix of income-producing real estate. They focus on different types of properties, such as offices, shopping malls, data centers, and more. They offer a way to invest in real estate without having to get a mortgage and take care of the property.The great thing about REITs is that they have to pay out at least 90% of their taxable income to investors in dividends. According to NAREIT, the average dividend yield for all equity REITs in 2023 was 3.9%. Dividend payments are separate from any investment gains (or losses).Not all REITs were created equal. Before you jump in, research the different segments of the industry and look at the performance of individual trusts. In addition to yields, look at factors like what property the trust owns and who manages the company.3. Pay down high-interest debtStrictly speaking, paying down debt is not an investment. But few investments can guarantee a return of 20% or more. Data from the Federal Reserve shows the average credit card APR on interest-paying accounts is over 23%. If you’re paying much in credit card interest, paying down your balance is one of the best investments you can make.According to data from the St Louis Fed, almost 50% of Americans carry a balance on their credit card. If you’re one of them, decide how you’re going to tackle that debt. Look through your spending and work out how much you can realistically put toward debt repayment each month.You might prioritize paying down cards that carry the highest interest first (called the debt avalanche method). Another route — called the debt snowball method — is to focus on the smallest balance first, so you get a psychological win when it’s paid off. It’s also worth seeing whether debt consolidation could help you reduce your interest rate and simplify payments.Once you’ve paid down your credit card balance, you’ll have more available cash to put toward your savings and investment goals.Bottom lineEvery investor has a different tolerance for risk. The investments above may have good and bad years, but they also have proven track records of outperforming savings accounts over time. The biggest risk of all is to wait on the sidelines earning decent rates from a CD. If you want to build wealth, you need to do more than beat inflation.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Image source: The Motley Fool/Upsplash

If you’ve been basking in the sun of high savings APYs, you might be disappointed that the Fed’s started to cut rates. However, I’d argue the changing tides are actually an opportunity. Top CDs offer rates near 5%, which is solid. But these rates can distract people from other higher-paying investments.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Depending on when you might need to touch your money, here are three better places to park your cash.

1. Invest in the S&P 500

There is a difference between investing and saving. Investing is riskier but has the potential to generate higher returns over time. For example, the S&P 500 — which tracks the performance of 500 of the biggest U.S. companies — has generated average annual returns of around 8%.

If you were to invest $1,000 a month for 30 years, being able to earn annual returns of 8% would give you over $550,000 more than a CD paying 5%.

Savings are a safe place to put cash you might need in the near term. Both savings and investments are essential if you want to build wealth. So before you invest, make sure you have three to six months’ worth of living expenses in a high-yield savings account. Think of it as your safety net in case things go wrong.

In the market for a high-yield savings account to stash your emergency fund, but not sure where to start? Check out this list of our favorite high-yield savings accounts to open one and get started saving today.

Once you’re good on emergency savings, check out ETFs that track the S&P 500. The index has a strong track record and you don’t need to worry about picking individual stocks. ETFs are often a great low-fee way to get exposure to a particular index, industry, or other group of assets.

2. Invest in REITs

REITs are companies that own and manage a mix of income-producing real estate. They focus on different types of properties, such as offices, shopping malls, data centers, and more. They offer a way to invest in real estate without having to get a mortgage and take care of the property.

The great thing about REITs is that they have to pay out at least 90% of their taxable income to investors in dividends. According to NAREIT, the average dividend yield for all equity REITs in 2023 was 3.9%. Dividend payments are separate from any investment gains (or losses).

Not all REITs were created equal. Before you jump in, research the different segments of the industry and look at the performance of individual trusts. In addition to yields, look at factors like what property the trust owns and who manages the company.

3. Pay down high-interest debt

Strictly speaking, paying down debt is not an investment. But few investments can guarantee a return of 20% or more. Data from the Federal Reserve shows the average credit card APR on interest-paying accounts is over 23%. If you’re paying much in credit card interest, paying down your balance is one of the best investments you can make.

According to data from the St Louis Fed, almost 50% of Americans carry a balance on their credit card. If you’re one of them, decide how you’re going to tackle that debt. Look through your spending and work out how much you can realistically put toward debt repayment each month.

You might prioritize paying down cards that carry the highest interest first (called the debt avalanche method). Another route — called the debt snowball method — is to focus on the smallest balance first, so you get a psychological win when it’s paid off. It’s also worth seeing whether debt consolidation could help you reduce your interest rate and simplify payments.

Once you’ve paid down your credit card balance, you’ll have more available cash to put toward your savings and investment goals.

Bottom line

Every investor has a different tolerance for risk. The investments above may have good and bad years, but they also have proven track records of outperforming savings accounts over time. The biggest risk of all is to wait on the sidelines earning decent rates from a CD. If you want to build wealth, you need to do more than beat inflation.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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