Liquid Savings: Best Ways to Keep Cash Safe and Accessible

When you think of liquid savings, cash you can access quickly without penalty. Also known as emergency cash, it’s not about getting rich—it’s about staying in control when life throws a curveball. Whether it’s a broken water heater, a sudden job loss, or an unexpected medical bill, liquid savings are your financial airbag. They don’t earn big returns, but they don’t lose value either. And in 2025, you can actually earn close to 5% APY without locking your money up for years.

There are a few main ways to hold liquid savings, and each has trade-offs. A high-yield savings account, an online bank account that pays significantly more interest than traditional savings accounts is the most common choice. It’s FDIC-insured, you can withdraw anytime, and apps like Chime or Ally offer rates that beat inflation. Then there’s the money market fund, a low-risk mutual fund that invests in short-term government and corporate debt. It’s not FDIC-insured, but it’s nearly as safe as cash and often pays a little more. Both are used by millions to store emergency funds, tax payments, or money waiting for the right investment opportunity.

What you avoid matters just as much. Don’t tie up your liquid savings in CDs unless you’re certain you won’t need the money. Don’t use a regular checking account—you’re leaving hundreds in interest on the table. And never confuse liquid savings with risky assets like crypto or growth stocks. If you need it in 30 days, it shouldn’t be subject to market swings. The goal isn’t to grow wealth here—it’s to preserve it so you can use it when things go sideways.

People often think they need a huge cushion—six months’ worth, or even more. But the real question isn’t how much you save, it’s whether your savings are truly accessible. Can you get the money in under 24 hours? Is there a fee to withdraw? Is it protected if your bank fails? These are the questions that separate smart liquid savings from just holding cash under a mattress.

Below, you’ll find clear, no-fluff reviews and comparisons of the tools that actually work. From app-based savings accounts paying 5% APY to money market funds that outperform traditional banks, we’ve tested what’s real and what’s hype. You’ll also see how people use these tools in real life—whether they’re building an emergency fund, saving for a down payment, or just keeping cash ready for tax season. No jargon. No sales pitches. Just what works today.