If you have a hefty sum of cash sitting in a regular savings account earning next to nothing, keep reading.
You're likely keeping that cash for certain reasons — whether it's for your emergency fund, home down payment, or supplemental income for retirement — but that doesn't mean it has to lose value to inflation.
One approach worth considering is a cash ladder. Organize your money into separate accounts based on what you're saving for and when you'll need it.
When structured right, you can earn anywhere from 4% to 8% in high-yield accounts, short-term certificates of deposit and income funds. The Real Estate Income Fund by Arrived, for instance, has had a consistent annualized dividend of 8% or higher for 25 months.
Here are four ways to get started, plus a few bonus moves.
Real Estate Income Fund
Earn monthly dividends from high-yield fund
AmeriSave
Find low rates to access your home equity
Ethos
Get an annuity with up to 10.5% a year
Wealthfront
Earn more on your cash than a traditional bank Liquid cash for emergencies
If your priority is keeping cash accessible while earning a competitive return, a high-yield savings account offers the best of both worlds.
A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.
A Wealthfront Cash Account currently offers a base APY of 3.55% through program banks, and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%¹.
That's ten times the national deposit savings rate, according to the FDIC's March report².
Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/mo minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase³ with no expiration date or balance limit, meaning your APY could be as high as 4.55%.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8M FDIC Insurance eligibility through program banks.
A good fit if you:
- Need an emergency fund earning competitive rates
- Have short-term savings (next 1 to 2 years) that need to stay liquid
- Want a holding place for cash before deploying elsewhere
- Value penalty-free access and no account minimums
Wealthfront
Earn more on your cash than a traditional bank Laddered CDs for defined goals
A Certificate of Deposit (CD) is a savings account where you lock money away for a set period in exchange for a guaranteed interest rate, typically higher than high-yield savings accounts.
A popular approach to maximize CDs is staggering them across different maturity dates so you can access portions of your principal each year.
A CD ladder works especially well if you're saving toward specific goals — like a home down payment, a vehicle purchase, renovations, or as a way to supplement retirement income.
According to CD Valet's recent rate analysis, institutions are actively adjusting CD rates ahead of Fed meetings. In the week of July 20-27 alone, of 1,149 rate changes tracked, 888 were increases while only 261 were decreases.
The biggest rate increases appeared in longer-term CDs, particularly 12- and 24-month terms — making this a strategic window to lock in rates before they potentially shift.
A good fit if you:
- Have specific savings goals with defined timelines
- Want guaranteed rates with periodic access to principal
- Need to bridge the gap before Social Security or pension income
- Prefer a structured approach to managing multiple CDs
Real estate fund for passive income
Real estate can offer steady income, but becoming a landlord means dealing with repairs, tenant issues, and late-night emergencies. What if you could skip that part?
With the Arrived Real Estate Income Fund, you can invest in short-term loans used to fund real estate projects such as renovations, property rehabs, or new home construction. The minimum investment is $100, meaning this opportunity is open to every type of investor.
The fund generates cash returns by collecting interest payments on the loans and distributing monthly payouts to investors.
Historically, the Arrived Real Estate Income Fund has paid a consistent annualized dividend of 8% or higher for 25 months to investors.
All of the loans are secured by residential housing as collateral, so even if borrowers default, the underlying property can be sold to keep the fund healthy.
There are restrictions around when you can access your cash, so you'll want to ensure you're not investing what's meant for your emergency fund or any ultra-short-term financial goals.
Think of it this way: if you've already built an emergency fund earning 4% in a high-yield savings account, the Arrived Real Estate Income Fund is where your next layer of cash can work significantly harder — earning an 8.4% historical annualized return.
A good fit if you:
- Have an emergency fund already in place
- Want monthly passive income without managing properties
- Can commit capital for medium-term holds
- Seek real asset diversification
Real Estate Income Fund
Earn monthly dividends from high-yield fund Guaranteed income for retirement
Once you've built your emergency fund, laddered your CDs, and added real estate yields, consider adding a guaranteed income layer alongside Social Security and your investments.
For some people, especially those already in or approaching retirement, an income annuity through Ethos can help you convert your savings into predictable income.
In exchange for a lump sum, you can get guaranteed income for life, backed by the issuing insurer's claims-paying ability. This guarantee requires annuitizing your funds and is subject to the specific contract's terms, including any applicable surrender charges.
You can lock in predictable income you can count on every month and customize your payout schedule to fit your budget. If you need the money now, you can turn a lump sum into income that starts right away.
An income annuity can also help you diversify your retirement income strategy and provide another source of income alongside Social Security, pensions and other savings, with lifetime guaranteed income for those 59 and older, backed by the issuing insurer's claims-paying ability and subject to annuitization, rider elections, and contract terms including surrender charges.
If you're considering an income annuity, book a free consultation with a licensed Ethos insurance agent to explore your options. No purchase is required.
A good fit if you:
- Are entering or in retirement and want guaranteed income
- Want to lock in rates before they potentially decline
- Prefer predictable returns over market-linked growth
- Have a lump sum to commit for 3 to 10 years
Ethos
Get an annuity with up to 10.5% a year Not available for residents of New York.⁴
Bonus: 3 more strategies to consider
You now have your core cash ladder. Depending on your situation, consider these additional strategies to maximize your cash.
Tap your home equity
If you're a homeowner with built-up equity, a HELOC offers a flexible way to access cash without upending your mortgage or tapping retirement accounts.
A HELOC lets you access supplemental cash, especially when you suddenly have to pay unexpected expenses, living costs exceed your planned withdrawals, or markets are down and you want to avoid selling at a loss.
If you're retired and have paid off most or all of your mortgage, a HELOC gives you flexible access to cash without forcing tax-advantaged withdrawals.
Companies like AmeriSave offer competitive HELOC options that let you tap your equity without touching your primary mortgage rate. It's one of the more underused levers available to retirees with built-up equity.
Amerisave is well-suited for homeowners who want a mostly online, low-friction experience from a well-known mortgage lender. However, it's important to evaluate the risks carefully since your home serves as collateral.
A good fit if you:
- Are retired with home equity and want flexible access without refinancing
- Face unexpected expenses and want to avoid selling investments
- Need a cash bridge before income kicks in
- Prefer backup liquidity outside your portfolio
AmeriSave
Find low rates to access your home equity Auto-invest your spare cash
Most of the strategies above require lump sums or specific goals. But there's another approach: automating small contributions as you spend, so your cash grows without requiring upfront capital or major decisions.
With a robo-advisor platform like Acorns, you can continuously invest in a diversified, low-cost portfolio without much effort.
Their round-up feature allows you to invest your spare change consistently as you spend on everyday items. All you need to do is sign up and link your cards, which just takes a couple of minutes.
Then it'll round up your purchases to the nearest dollar and invest the difference in a diversified portfolio. When you buy groceries for $42.30, for example, that extra 70 cents goes into a low-cost ETF.
The app also lets you set recurring contributions on top of your round-ups, so you can put in as much or as little as your budget allows.
And if you sign up today with a recurring monthly deposit, Acorns will add a $20 bonus investment to your account.
A good fit if you:
- Want to build a portfolio without large upfront capital
- Prefer automated, hands-off investing
- Rather invest small amounts consistently over time
- Want low-cost, diversified exposure
Acorns
Auto-invest your spare change Get professional guidance
The right combination of these cash strategies depends on where you are in your financial journey.
If you're 10 years away from retirement, you might prioritize higher-yield options while maintaining your emergency fund.
If you're approaching retirement in two or three years, you may shift toward guaranteed income streams and liquid reserves. And once you're in retirement, your cash allocation might look completely different.
For investors with portfolios of $250,000 or more, these decisions become increasingly nuanced. Managing withdrawals, minimizing tax exposure, and ensuring long-term sustainability across multiple cash strategies often requires greater coordination and strategic planning.
Platforms like WiserAdvisor can connect you with vetted professionals who specialize in comprehensive financial planning.
Simply answer a few questions about your savings, retirement timeline, and overall investment portfolio. From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs.
You can then schedule no-obligation consultations with your matches to explore which combination of cash strategies — guaranteed income, real estate yields, liquid reserves, or CD ladders — makes sense for your timeline and goals.
WiserAdvisor
Get matched with 2 or 3 experts based on your needs Note: WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed.
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