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. Here are three ways to get started.
Wealthfront
Earn up to 4.55% APY on your cash
Ethos
Get an annuity with up to 10.5% a year
Real Estate Income Fund
Earn monthly dividends from high-yield fund 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 up to 4.55% APY on your cash 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.
If you’d rather lock in a rate for longer, there’s another option that works a lot like a CD.
A multi-year guaranteed annuity (MYGA) through Ethos lets you lock in a fixed rate for a set term. Unlike a CD, a MYGA's guarantees are backed by the issuing insurer's claims-paying ability rather than FDIC insurance, and early withdrawals may be subject to surrender charges rather than the smaller early-withdrawal penalty typical of CDs.
Your savings can also benefit from tax-deferred growth that becomes your future income. And because your rate is fixed, you can protect your savings from market downturns, though the guarantee is backed by the issuing insurer's claims-paying ability rather than a government guarantee. Accessing funds before the term ends may trigger surrender charges and — before age 59½ — an IRS early withdrawal penalty.
If you're considering a MYGA, book a free consultation with a licensed Ethos insurance agent to explore your options. No purchase is required.
A good fit if you:
- have savings you won’t need for at least three to five years
- want a guaranteed rate that won’t shift with the market
- like the idea of tax-deferred growth on your interest
- are comfortable leaving your money untouched for the full term
Ethos
Get an annuity with up to 10.5% a year Not available for residents of New York.⁴
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 Earn more on your cash
Wealthfront
Earn up to 4.55% APY with a high-yield cash account
Ethos
Get an annuity with up to 10.5% a year.
Arrived REIF
Earn monthly dividends from high-yield fund
