economy

January 28, 2026

Where to still find solid yields on cash as the Fed holds rate steady

Some money market funds yield over 3.5%, while certain certificates of deposit offer annual percentage yields of 4%.

Where to still find solid yields on cash as the Fed holds rate steady

TL;DR

  • The Federal Reserve decided to hold interest rates steady at 3.5%-3.75%.
  • This decision means borrowing costs and yields on savings products are likely to remain unchanged in the short term.
  • Money market funds remain attractive with yields around 3.5%, significantly higher than the national average for savings accounts (0.61%).
  • Financial advisors suggest increasing liquidity for clients in uncertain job markets and holding 5%-20% in cash instruments for investment opportunities.
  • Certificates of Deposit (CDs) with staggered maturities (e.g., six-month ladders) and short-term Treasury ETFs are also recommended options for holding cash.
  • Examples of attractive CD rates include 4.05% for six-month CDs from Marcus by Goldman Sachs and 4% for one-year CDs from Marcus by Goldman Sachs and Sallie Mae.

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