6. Consider a Short-term Certificate of Deposit (CD)

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A certificate of deposit with a maturity term of less than one year is known as a short-term CD. Banks can issue short-term CDs with different maturities. A one-year CD may provide you with more interest than a savings account. 

Furthermore, the yield on a CD is normally fixed; as long as you retain the money in the CD for the rest of the term, you’re assured of receiving the initial APY. However, be careful with this! You should avoid CDs if you believe you may need the money before the CD period expires to avoid paying early withdrawal penalties.

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