8 best places to keep your cash in 2026

Now that the new year is underway, you may be reflecting on both your financial situation and the greater financial landscape in the U.S. Though prices for everything — from groceries to housing to utilities — remain high, inflation has slowed over the last year. This prompted the Fed to cut rates three times during 2025. At the same time, the job market has cooled, and unemployment has risen.

If nothing else, the current economic situation may be reinforcing how important it is to keep cash on hand. Whether you lose your job or you’re simply facing a higher cost of living, cash can provide you with a critical safety net. That’s why choosing the right place to protect and grow it is crucial.

The best place for your cash depends on your financial situation and priorities. Where one account may offer higher returns, another may have higher liquidity. Consider the following options for your cash in 2026, keeping your unique needs in mind:

High-yield savings accounts (HYSAs) offer two major perks: competitive interest earnings and high liquidity. The biggest difference between HYSAs and traditional savings accounts is that HYSAs pay higher rates, often because they’re offered by banks with lower overhead costs (namely, online banks).

With the best high-yield savings accounts earning as much as 4% APY, these accounts could be a great place to store cash and help your balance grow faster. However, keep in mind that some banks may limit the number of withdrawals you can make from your HYSA each month.

A money market account (MMA) combines features of a savings account and a checking account, making it a versatile option for managing your cash. MMAs tend to earn higher interest rates compared to traditional savings accounts, but they also typically come with a debit card and/or checks to make accessing and spending your money easier.

Even though MMAs are more accessible than regular savings accounts, they can still have withdrawal limits. MMAs also tend to have higher minimum balance requirements, so they may not be the best choice if your savings balance is small.

A certificate of deposit (CD) is a type of account that allows you to lock in an interest rate for an agreed-upon period of time, known as the term. You generally can’t touch your money until the account reaches maturity without paying a penalty. But in exchange for keeping your money on deposit, CDs offer guaranteed interest.

CDs come in a range of terms, from one month to five or more years. Short-term CDs, or those with terms of one year or less, let you benefit from competitive, fixed interest rates without locking up your money for too long. Plus, with current economic conditions, some shorter-term CDs are offering the most competitive rates.

Read more: Understanding CD terms: How long should you lock in your money?

Treasury bills are short-term debt securities issued by the U.S. government with terms ranging from four weeks to one year. When you purchase a Treasury bill, you pay a discounted price. When the bill matures, you receive its face value.

While Treasury bills aren’t insured by the Federal Deposit Insurance Corporation (FDIC), they’re extremely low-risk investments, as they’re guaranteed by the U.S. government. This can be beneficial if you’re looking for a safe place for your cash but have maxed out your bank’s FDIC coverage limit. (Alternatively, you could open an account at another bank.)

Treasury bills are highly liquid, and you can sell them before maturity. Current rates are similar to those of HYSAs and some CDs.

Read more: CDs vs. Treasury bills: Which is better for maximizing your savings?

Series I bonds are an extremely low-risk security issued by the U.S. Treasury. The return you earn is based on two interest rates: a fixed rate, which stays the same throughout the life of the bond, and an inflation rate, which adjusts every six months. The current rate sits just above 4%.

I bonds earn interest for 30 years unless you cash them in early. You can cash in an I bond as soon as 12 months after purchasing it, but you’ll pay a penalty if you cash in before five years. On the bright side, you don’t have to pay state or local taxes on I bond earnings.

Keep in mind that with I bonds, you don’t receive your interest earnings until your bond matures or you cash it in. There’s also a ceiling on how much you can invest in I bonds — you’re limited to $10,000 worth each year.

Read more: How to cash a savings bond

A money market fund is a type of low-risk mutual fund that generally pays dividends on track with short-term interest rates. Though they’re not insured, money market funds invest in low-risk, short-term debt securities and cash and cash equivalents.

Compared to other mutual funds, money market funds have historically offered lower returns but are considered extremely safe. They’re also highly liquid investments, allowing you to withdraw money without penalty at any time.

Unlike money market accounts and other savings accounts, you have to open a money market fund through a brokerage account. But they can play a similar role as a savings account, providing a safe place for an emergency fund or other short-term savings.

Read more: Money market account vs. money market fund: What’s the difference?

High-yield checking accounts are similar to HYSAs in terms of interest earnings, but they have typical checking account features and no withdrawal limits. Keep in mind that you may have to meet certain requirements, such as using direct deposit or maintaining a minimum balance, in order to qualify for the highest rate.

While earning interest or cash back on your checking account balance is a great way to boost your balance, it shouldn’t be a substitute for savings. HYSAs and other types of savings accounts tend to offer higher yields, and separating your savings from everyday spending money can reduce the temptation to overspend.

Learn more: Are high-yield checking accounts worth it?

A cash management account (CMA) is similar to a money market account in that it combines features of both savings and checking accounts. CMAs pay interest on your balance, and they often come with checking features such as bill pay, direct deposit, and a debit card. But unlike MMAs, CMAs are generally linked to an investment account, allowing you to seamlessly move money between cash and investments all under one roof.

CMAs are beneficial for those with large amounts of cash, as they often partner with multiple banks to offer more than the standard $250,000 worth of FDIC coverage. They’re also convenient if you want to keep your cash, savings, and investments within a single financial institution.

Read more: How much cash should I have on hand?

When deciding where to keep your cash in 2026, three primary factors will affect your decision:

• Risk tolerance: This is how much uncertainty you’re willing to stomach in exchange for potential gains. If you have a high risk tolerance, you may be more willing to put your money where it can earn bigger returns, even if that means sacrificing some security. Though risk varies slightly among the account types listed above, all options are generally low-risk.

• Liquidity: Liquidity is how accessible your money is. In general, you’ll want some cash to be highly liquid so you can use it for daily spending and emergencies. But if you have cash set aside for longer-term goals, you may be more willing to keep it in a less accessible account, such as a CD.

• Returns: Higher returns mean you’re earning more on your cash, which can help you build savings more quickly. But when you prioritize returns, you generally have to sacrifice either liquidity or security (or both).

Ultimately, you might choose multiple account types for your cash portfolio so you can balance risk, liquidity, and returns.

If you’re looking for more ways to get a bigger bang for your buck in 2026, use these tips to maximize your cash:

• Take advantage of a high-yield “hybrid” account. With certain accounts, you don’t have to choose between checking and savings — and you can earn interest on your whole balance. For example, the Axos ONE account is a hybrid account that earns up to 4.31% APY on your savings balance and 0.51% APY on your checking balance. SoFi offers accounts with a similar setup.

• Use micro-savings tools. If you want to save money with every purchase, use a round-up or other micro-savings tool to set aside small amounts of cash. Many banks offer these kinds of tools — for example, Ally Bank offers “savings round-ups,” which round your purchases to the nearest dollar and transfer the money into savings.

• Choose accounts that offer a sign-up bonus. Similar to credit card sign-up bonuses, banks sometimes offer cash bonuses for new checking or savings account customers who meet certain criteria. For example, Chase Bank offers $300 to new Chase checking customers who open a Chase Total Checking account and make at least $500 worth of direct deposits within 90 days. If you’re already thinking about opening a new bank account, earning a sign-up bonus is an easy way to boost your cash.

• Set up automatic transfers. If you want to save more money, don’t rely on your memory to do it. Instead, set up automatic transfers from your checking to your savings account. Like using a micro-savings tool, automatic transfers can help your savings grow on autopilot.

Read more: Struggling to build a ‘rainy day’ fund? These 5 banking tools can help.