Maximize Your Earnings with High-Interest Cash Accounts and CDs

Cash is becoming more attractive for investors as interest rates reach near 22-year highs. Online banks are offering high-yield savings accounts paying interest around 5%, while rates on one-year certificates of deposit can go up to 5.67%. However, experts advise against loading up on cash, as there is a significant opportunity cost in terms of long-term growth. Cash should be used appropriately for emergency funds and short-term spending goals. Different options for holding cash include high-yield savings accounts, certificates of deposit, money market funds, and Treasurys. The amount of cash to hold and the vehicle to use depend on personal circumstances and financial goals.