MONEY SMARTS

3 safe places for your money

For now, even a 2% return will beat inflation.

Everyone needs an emergency savings stash, especially now. But where do you put that money? Here are three safe options:

High-yield, FDIC-insured online savings account. Even a 2% rate of return will beat inflation these days. "They're doing better than a year ago, when the rate was at 5% and inflation was at 5.5%," says Greg McBride of Bankrate.com. "It won't stay this way forever, but it allows you to benefit from rising savings rates."



High-yield CDS. A one-year certificate of deposit now averages a 2.2% yield. Stick with shorter (six months, one year) maturities. "With interest rates at historic lows, this isn't the time to commit for a multi-year period," McBride says. Compare rates for savings accounts and CDs at bankrate.com.



High-yield checking accounts. On average, online accounts offer a yield of .85%, while bricks-and-mortar bank accounts are earning .75%. Both types may require direct deposit, and there can be restrictions on the number of monthly transactions. If that sounds like a fit, the extra return is pure gravy.