Making your money grow doesn’t necessarily require investing in risky investments like stocks. In fact, you can earn interest on your savings without risking losing your hard-earned money. But your money can earn you even more if you know the right places to put it.

Depositing money in a high-yield savings account, taking advantage of a bank bonus, and opening a certificate of deposit (CD) account are tried-and-true ways to earn interest, but there are other options available. savings to consider.

Here are seven ways to earn interest on your savings while minimizing your risk.

1. Open a High Yield Savings Account

You don’t have to settle for the low interest rate returns of 0.13% found in traditional savings accounts when you can earn 2% or more in a high yield savings account (the higher the annual percentage yield, or APY, the higher your compound interest). Banks such as Bask Bank, Tab Bank and UFB Direct each offer high yield savings accounts at over 2.6%. Major online banks such as SoFi, Discover, and Capital One each offer accounts with 2% APYs. Your local bank or credit unions may offer high-yield savings accounts with higher APYs, so be sure to shop around in your area.

2. Open a money market account

A money market account – or money market deposit account – is a hybrid of checking and savings accounts, offering the features and benefits of both in one account. You get a higher interest rate, like you would with a high-yield savings account, plus checking and writing privileges and a debit card for withdrawals. Ideal for short-term financial goals, money market (or MMA) accounts allow the account holder to earn interest on their balance. Although the interest rate may be higher than that of a traditional savings or checking account, the interest rate on a money market account tends to be variable and is subject to fluctuations – up or down depending on market conditions. Higher Yield Money Market Accounts currently have interest rates between 2% and 3%.

Note that the money market accounts are different from the money market funds — a type of mutual fund that invests in highly liquid financial instruments such as cash and US Treasury bills.

3. Open a Certificate of Deposit (CD)

A certificate of deposit, or CD, is a high-yield savings account that locks in your interest for a fixed term, usually between six months and five years. After your initial deposit, you can’t touch that money until the CD term expires. As an incentive to lock in your assets for a fixed term, the CD pays a higher interest rate than a money market account or a savings account. Generally, the longer your duration, the higher your return. Better performance 5-year CD ratesfor example, offer APYs between 3% and 4%.

4. Build a CD Ladder

A CD ladder is when you open multiple CDs with different durations so you can access some of your money sooner while earning the highest APY available for longer term accounts.

Say, for example, you have $2,500 to invest in a five-year CD. Rather than putting all your money into this CD, a ladder strategy would divide the money into a few different CDs. So you could put $500 each into a one-year CD earning 0.65%, a two-year CD earning 0.80%, a three-year CD with an APY of 0.95%, a four-year CD years at 1.05% and a five-year CD. the year with a return of 1.2%. When terms end on the one-year CD, you can use those funds to invest in a new four-year CD with a higher APY. The following year, your two-year CD will expire. You can use these funds to invest in another four-year CD. You can go on like this for as long as you want.

5. Find a bank bonus

You don’t need to be tied to a bank savings account for the rest of your life. If you have different savings goals, open a different account for each of those goals and find a financial institution that offers a sign-up bonus to new customers.

Many traditional banks, credit unions, and online-only institutions offer bank bonuses to new customers to encourage them to open an account. Usually there are strict guidelines, such as meeting a minimum deposit amount or keeping a specified amount in your account for a period of weeks or months. Also, some banks only reward you after a year has elapsed. You might find more lucrative bonuses on checking accounts, which don’t normally pay interest. So do the math to see if the return is worth it compared to a traditional high-yield savings account.

6. Look for a rewards checking account

A rewards checking account offers incentives for opening an account and maintaining certain minimum requirements. Rewards could be bonus cash, cash back (like a credit card) or a higher APY similar to a high yield savings account. A rewards checking account may have a few extra hoops over that of a high-yield savings or money market account, but it may be worth more than other savings options.

7. Consider investing in I-bonds

I-bonds are savings bonds that pay interest based on a fixed rate and an inflation rate. Currently, Series I Savings Bonds pay 9.62% interest. You can buy up to $10,000 (and as little as $25) in I-bonds each calendar year and hold those bonds for up to 30 years. I-bonds can be cashed in after one year, but you will lose three months’ interest if you cash in before five years. This type of account is more suitable for very long-term savers than the short-term money market account.

Interest rates change twice a year from May and November. So if you want to lock in an interest rate of up to 10%, you’ll need to buy Series I bonds by October 31.

How to determine which account is best for you

Here are some factors to consider when finding the right high-yield savings account:

  • Cash. A little goes a long way, but a lot goes even further. If you have a large lump sum, you might want to deposit it into a high yield savings account or start a CD ladder. If, however, you have $100, you might consider buying an I-bond.
  • Access to funds. If you want to withdraw your money at any time, you may want a high-yield savings account or money market account instead of the five-year CD, which imposes penalties if you withdraw it before the end of the term. .
  • Your goals and your needs. Your financial needs should determine the type of account you open. If, for example, you’re saving for a down payment on a house, you’ll want to consider a longer-term account that will pay higher interest over a longer period of time than, say, a shorter-term money market account that could be used to save for a holiday abroad.

Find a user-friendly financial institution, such as a bank, that offers easy sign-up and simple mobile apps. Also research various financial options and institutions, such as local banks and credit unions, for possibly higher rates and lower fees.

The bottom line

Savings accounts such as money market accounts and high yield savings accounts do not have the same rate of return as investment accounts such as stocks, but they carry little or no risk. With a variety of options to choose from, take the time to research the one that best suits your financial needs and goals.