Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

If you’ve managed to accumulate a significant amount of savings, like $100,000 or more, you’re probably feeling a sense of financial security. Having a healthy cash reserve is essential for covering emergencies and making large purchases without relying on debt. However, leaving your money idle in a traditional savings account can actually cause it to lose value over time, as the interest earned often fails to keep pace with inflation.

When you have a substantial sum of cash sitting in savings, it’s wise to consider putting some of that money to work in low-risk products that not only protect its value but also provide returns. We'll cover four options for you to consider, each with varying levels of risk and liquidity. And be sure to read through to the end to see the option with a huge 9% APY.

High-Yield Savings Accounts

A high-yield savings account is a safe option that offers easy access to your money. These accounts typically provide higher interest rates than traditional savings accounts, allowing your money to grow faster. Online banks often have the most competitive rates, as they have lower overhead costs compared to brick-and-mortar institutions.

With a high-yield savings account, your money is FDIC-insured up to $250,000 per depositor, per insured bank, ensuring your funds are protected even in the event of a bank failure. This makes high-yield savings accounts an excellent choice for short-term savings goals or emergency funds.

Money Market Accounts

Money market accounts combine features of both savings and checking accounts. They offer check-writing capabilities and ATM access, along with interest on your balance. While the interest rates are typically lower than those offered by CDs, they are often higher than traditional savings accounts.

Like high-yield savings accounts, money market accounts are FDIC-insured up to $250,000. This provides peace of mind knowing your money is safe. However, it’s important to note that money market accounts may have higher minimum balance requirements compared to other savings options.

Jumbo CDs

For those who don’t need immediate access to their extra cash, jumbo CDs can be an attractive option. Jumbo CDs require a minimum deposit of $100,000 and offer better rates than traditional CDs. By committing to leaving your money untouched for a set term, usually ranging from a few months to several years, you can secure a higher interest rate.

Keep in mind that withdrawing funds from a CD before its maturity date typically results in a penalty, so it’s crucial to choose a term that aligns with your financial goals. Additionally, while the FDIC insures deposits up to $250,000, any amount exceeding that limit in a single account will be uninsured.

Short-Term Notes

For those willing to take on a bit more risk in exchange for potentially higher yields, short-term notes can be an appealing option. One example is Basecamp Alpine Notes from EquityMultiple, which offer a target APY of 9.00% over a 3-month term with a minimum investment of just $1,000.

These notes provide high liquidity and attractive rates of return, making them a convenient solution for cash management. However, it’s essential to understand that short-term notes are not FDIC-insured and carry more risk compared to savings accounts or CDs. Click here to see how much you could be earning with Bascamp Alpine Notes.

Choosing The Right Option For You

When deciding where to park your extra cash, consider your financial goals and risk tolerance. Are you saving for a short-term goal, like a down payment on a house, or a long-term goal, like retirement? How comfortable are you with the possibility of losing money?

It’s also crucial to keep in mind the FDIC insurance limit. Spreading your money across multiple banks or account types can help ensure that your funds are fully protected.

Ultimately, speaking with a financial advisor can help you evaluate your options and determine the best place to put your extra cash based on your unique financial situation goals. By carefully considering your choices and seeking professional guidance when needed, you can make informed decisions that will help your money work harder for you.

Bonus: Seeking A Long-Term High-Yield Investment?

Real estate has historically been one of the most reliable sources of income for investors but is traditionally far from a passive investment when you consider all of the management responsibilities involved. However, a company backed by Amazon.com Inc founder Jeff Bezos has created a real estate investment platform that allows retail investors to buy shares of carefully selected rental properties. The best part is you can invest with as little as $100.

Arrived takes on all of the landlord responsibilities while investors simply collect monthly dividends from the rental income while the properties appreciate in value over time. The platform has already funded over 370 properties and has paid out more than $5.6 million in dividends. The process to sign up and become a partner in a single-family rental only takes about 10 minutes.

Click here to view properties currently available on Arrived.

This article Have Over $100,000 In Savings? Here Are 4 Places You Can Park That Extra Cash To Put Your Money To Work originally appeared on Benzinga.com