534d0ef040b8f1e254a026a25c2467ef - Discover 7 Secure Alternatives for Storing and Growing Your Money Instead of a Savings Account
Julia_Sudnitskaya / Getty Images/iStockphoto

In the modern financial world, opting for a regular savings account may not always be the most effective choice if you want to grow your funds. There are various alternatives available that can not only provide a secure place for your money but also offer better returns on your investment.

What Is Safer Than a Savings Account?

Savings accounts are generally considered safe due to FDIC insurance, but they are not the only secure option for financial storage. Other options exist that provide similar security levels and potentially higher returns.

High-Yield Savings Accounts

A simple alternative is a high-yield savings account. These accounts are similar to traditional savings accounts but offer higher interest rates. Many online banks, such as Discover Bank, offer these types of accounts. They are still FDIC insured, ensuring the safety of your money.

Money Market Accounts

Another option is a money market account. These accounts often have higher interest rates compared to standard savings accounts and come with FDIC insurance as well. However, they may require a higher minimum balance and have limitations on withdrawals.

Certificates of Deposit

Certificates of deposit are time-bound savings instruments that typically offer higher interest rates than traditional savings accounts. The catch is that you agree to keep your money in the CD for a fixed period, and withdrawing early can result in penalties.

Treasury Bonds

For those seeking virtually risk-free options, treasury bonds issued by the government can be a safe choice. They offer fixed interest rates and are backed by the government, making them one of the safest investments.

Peer-to-Peer Lending

Peer-to-peer lending platforms allow you to lend your money to individuals or businesses online, often yielding higher returns than traditional savings. However, this comes with a bit more risk, as the safety of your money depends on the borrower’s ability to repay the loan.

Roth IRA

Although primarily used for retirement savings, a Roth IRA can also be a smart place to store and grow your money. Contributions can be withdrawn at any time without penalty, although there are specific rules for earnings.

Online Investment Portfolios

Consider online investment portfolios managed by robo-advisors. These platforms offer a way to invest in a diversified portfolio with minimal effort. They are generally low-cost and can be tailored to your risk tolerance, although they do carry more risk than a traditional savings account.

Final Take

While traditional savings accounts offer a secure place to store your money, exploring alternatives can lead to greater financial growth. It’s important to find a balance between safety and potential returns and always consider your personal financial situation and risk tolerance before making any decisions.


Here are the answers to some frequently asked questions about savings accounts.
  • Is there a better option than a savings account?
    • Yes, there are several options that can be better than a traditional savings account, depending on your financial goals and risk tolerance.
      • High-yield savings accounts offer higher interest rates while maintaining similar safety levels.
      • Money market accounts and CDs can also provide higher returns.
      • For long-term growth, investment accounts, like those managed by robo-advisors or retirement accounts like Roth IRAs, might be more suitable.
  • What is the safest place to protect your money?
    • The safest place to protect your money is typically in an FDIC-insured account, such as a savings account, high-yield savings account, or a CD at a bank. You can also look for NCUA-insured accounts at credit unions. U.S. Treasury securities are among the safest investments as they are backed by the full faith and credit of the U.S. government.
  • What can I do instead of saving money?
    • Instead of simply saving money in a traditional savings account, you can consider investing in a diversified portfolio, which may include stocks, bonds, or mutual funds, for potentially higher returns.
    • Other alternatives include the following:
      • Using a high-yield savings account.
      • Investing in a Roth IRA for retirement.
      • Exploring peer-to-peer lending for potentially higher interest income.
    • However, it’s important to assess the risk associated with these options and consider your financial situation and goals.

Editor’s note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of’s editorial team.

Leave a Reply

Your email address will not be published. Required fields are marked *

SQL: 92 за 0.217 sec. 5.85 MB