Investing

These days, fewer Americans, including millionaires, feel confident about their financial standing.
Even highly paid professionals said they don’t feel well off at all, according to a recent report by Bloomberg.
Persistent inflation has made everything more expensive.

Earning a good salary is one thing, feeling “rich” is another.
Even doctors, lawyers and other highly paid professionals — also referred to as the “regular rich” — who benefit from stable jobs, homeownership and a well-padded retirement savings account said they don’t feel well off at all. Some even said they feel poor, according to a recent survey conducted by Bloomberg.

Of those making more than $175,000 a year, or roughly the top 10% of tax filers, one-quarter said they were either “very poor,” “poor” or “getting by but things are tight.” Even a share of those making more than $500,000 and $1,000,000 said the same.
More from Personal Finance:Don’t borrow money for your weddingHere’s how much people really tip post-pandemicHere are 3 things to know about retirement benefits
These days, fewer Americans, including millionaires, feel confident about their financial standing.
Despite their high net worth, less than half of all millionaires, or 44%, felt “very comfortable,” a separate report by Edelman Financial Engines also found.
In fact, only 12% of Americans — and just 29% of millionaires — consider themselves wealthy, the report said.

What it takes to feel “rich”

“What would it take to feel wealthy?” said Jason Van de Loo, chief client officer at Edelman Financial Engines. “The short answer is more.”
Most people said they would need $1 million in the bank, although high-net-worth individuals put the bar much higher. More than half said they would need more than $3 million, and one-third said it would take more than $5 million, Edelman Financial Engines found.
When it comes to their salary, Americans said they would need to earn $233,000 on average to feel financially secure, according to a separate Bankrate survey. But to feel rich, they would need to earn nearly half a million a year, or $483,000, on average.

Persistent inflation has made everything more expensive. Households are facing surging child care costs, ballooning auto loans, high mortgage rates and record rents.
To bridge the gap, more people rely on credit cards to cover day-to-day expenses.
In the last year, credit card debt spiked to at an all-time high, while the personal savings rate fell.

But a deterioration of the American dream has been decades in the making, according to Mark Hamrick, Bankrate’s senior economic analyst.
“Structural or long-term changes have been injurious to Americans’ ability to manage their personal finances,” he said.
“Where there was a time in the U.S. when a married couple, with children, could get by with a single-wage earner in the house, those days are mostly vestiges of the past.”
Money continues to be the No. 1 source of stress among households, Van de Loo added. “The last couple of years just lit a match to those concerns.”
Subscribe to CNBC on YouTube. More

The price of getting married has ballooned amid sticky inflation, and some couples are footing the bill with personal loans.
Personal loans are more expensive after interest rate hikes from the Federal Reserve, reaching an average of 11.29%, as of Aug. 16, compared to 10.28% in early 2022.   
While personal loans can be cheaper than higher interest credit cards, experts urge couples to consider other ways to fund a wedding.

Peter Dazeley | The Image Bank | Getty Images

The price of getting married has ballooned amid sticky inflation, and some couples are footing the bill with personal loans — which may be a costly mistake, experts say.
Driven by inflation, the average cost of a ceremony and reception was $30,000 in 2022, up from $28,000 the previous year, according to wedding website The Knot.

Meanwhile, personal loans have become more expensive following interest rate hikes from the Federal Reserve. The average personal loan rate was 11.29%, as of Aug. 16, compared to 10.28% in early 2022, Bankrate reported.   
However, some couples may want to reconsider borrowing money to finance the big day.
“What you’re really doing is setting yourself up for a box of macaroni-and-cheese marriage,” said Mark Hamrick, senior economic analyst at Bankrate.
More from Personal Finance:Here’s how much people really tip post-pandemicHere are 3 things to know about retirement benefitsWhy you should plan for volatility, even with a ‘soft landing’ for the economyPersonal loans typically have a fixed interest rate that, depending on the borrower’s credit profile and income, can be cheaper than higher interest credit cards. But experts say it’s still a costly way to borrow.  

Nuptial loans a ‘hard place to start a relationship’

“I am wholeheartedly against any couple pulling out a loan for a wedding,” said Los Angeles-based wedding expert and planner Jason Rhee. “I think that is such a hard place to start in your relationship with your partner.” 

Parents and in-laws can pool funds to help cover the wedding but more couples, like Janet and Brian Counts from Front Royal, Virginia, are paying for the wedding themselves nowadays. 
“We were paying for it ourselves and I really did not want to go into debt for a wedding,” Janet Counts previously told CNBC.

There are many ways a couple can have their special day without a new loan or “pulling out a second mortgage,” added Rhee. 
Being transparent with your partner and whoever else is helping you fund or plan the wedding will avoid adding more stressors to an already high stakes process, he said.
Here are a few things to consider when paying for your wedding:

1. Vendors may offer payment plans

Most vendors have their own payment structures, said Rhee. You should ask about payment plans during the hiring process and take each vendor’s agreement into consideration. 
For instance, Janet Counts financed her wedding last year on payment plans. 

While it’s difficult to manage payment plans for 10 different vendors, you can organize them by due dates in a spreadsheet, suggested Counts. 
“They all pretty much required to be paid before the day of the wedding and that was really helpful,” she said. “Even if we put it on a credit card, it was nice not to have to do any payment conversations on the wedding day.” 

2. Credit card rewards may be useful

Some credit cards offer rewards a couple can later use for their honeymoons. However, before you pull out your card and start swiping, ask about your vendors’ preferred payment method. Most do not accept credit cards, and if they do, they will add a percentage charge to the bill, added Rhee. 

Keira01 | Istock | Getty Images

“If the points are very important to you, look how much the charge is to use a credit card versus the actual reward that you’re getting,” he said. 
But you may be stuck with high interest debt if you can’t pay off the balance immediately. The average credit card interest rate is currently above 24%, as of Aug. 14, the highest since 2019, according to LendingTree.    

3. Leverage higher savings rates

If your wedding date is farther out on the calendar, consider savings options to help your money grow faster, such as high-yield savings accounts or money market funds.The top 1% of savings accounts had an average 4.71% rate, as of Aug. 21, according to DepositAccounts.com, while some of the biggest money market funds were paying north of 5%, according to Crane Data.   More

You may have a difference servicer when federal student loan payments resume in October.
Several of the companies that manage education debt for the government have left the space.

Mementojpeg | Moment | Getty Images

Look out for notices about the change

Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers, said impacted borrowers should get emails about the change. These notices will explain the steps they’ll need to take, Buchanan said.
Higher education expert Mark Kantrowitz has been tracking the transfers.

Borrowers previously with FedLoan should be transferred to MOHELA, or the Missouri Higher Education Loan Authority, he said.

Those who were serviced by Granite State will now be with EdFinancial Services. Accounts with Great Lakes Higher Education, Kantrowitz said, should be managed by Nelnet going forward.
And Navient’s borrowers will be moved to Maximus Federal Services/Aidvantage.
You can check to see if you have a new servicer at StudentAid.gov., Kantrowitz said.

Prepare for glitches

Borrowers shouldn’t have to do much during the servicer swap, Buchanan said.
Some will need to create an updated online account with their new company. “But the communications they received would have told them if they needed to take that step,” he added.
If you were enrolled in automatic payments with your servicer, which usually leads to a small discount on your interest rate, you may need to reenroll, Kantrowitz said.

You’ll also want to make sure your new servicer has your latest contact information, he said, as these details might have changed during the Covid pandemic.
Also, Kantrowitz said, “whenever there is a change of loan servicer, there can be problems transferring borrower data.”
“Borrowers should be prepared for the possibility of glitches,” he added.

Payments due in roughly two months

The pause on federal student loan payments is slated to finally conclude in October.
Your due date should be at least 21 days after you are sent a loan statement, Kantrowitz said. More

Parents are bracing to spend more than ever on back-to-school supplies this year.
But there are ways to save big or, in some cases, spend nothing at all, savings experts say.

Getty Images

For students and their families, this could be the most expensive back-to-school season to date.
This year’s total back-to-school spending, including for college students, is expected to reach a record $41.5 billion, up from $36.9 billion last year and the previous high of $37.1 billion in 2021, according to the National Retail Federation. Families with children in elementary through high school plan to spend an average of $890.07 on school supplies, $25 more than last year’s record of $864.35, the NRF found.

As a result, 43% of back-to-school shoppers will have to leverage some form of financing to pay for supplies this year, a separate CNET Money survey found. Already, credit card debt stands at more than $1 trillion, its own all-time high.

On the upside, shoppers were more likely to say buying more supplies and more expensive items were to blame for the bigger bill this year, rather than higher prices, according to the NRF data.
Still, inflation has taken a hefty toll. CNBC recently used the producer price index — a closely followed measure of inflation — to track how the costs of making certain items typically purchased for students has changed between 2019 and 2023.
Those increased costs are often passed on to consumers in the form of smaller products or higher prices.
In every case, families are now paying more for key back-to-school essentials ahead of the new school year. For example, backpack prices have increased less than they have for other goods, but they are still 10.5% higher in June 2023 than they were in the same month in 2019.

How to save money on back-to-school shopping

Philippe Huguen | AFP | Getty Images

For starters, only shop for “the absolute necessities right now,” advised Julie Ramhold, a consumer analyst at DealNews.com.
Students may have to start the school year with notebooks, binders, paper, pens and pencils, but other purchases, such as a new backpack or lunchbox, can be put off until retailers start clearing out their excess inventory around Labor Day.
If you don’t need a new coat, boots, laptop or headphones right away, Ramhold recommends waiting until October or November, when the discounts on fall clothing and electronics will be greater.
A price-tracking browser extension such as CamelCamelCamel or Keepa can help you keep an eye on price changes and alert you when a price drops.
More from Personal Finance:Rather than a recession, we could be in a ‘richcession’61% of Americans live paycheck to paycheckMany young couples don’t split costs equally
In addition to shopping for the best price, take advantage of sales tax holidays, when many states lift sales taxes for a few days, according to RetailMeNot’s shopping experts. You can check your state’s website for dates and details on which purchases qualify.
For example, New Jersey waives its 6.625% sales tax rate on supplies and sporting equipment between Aug. 26 and Sept. 4, which means shoppers can save as much as $200 on a $3,000 computer.
Consumer finance expert Andrea Woroch recommends applying, if you qualify, for a new credit card with a sign-up bonus. Among her top picks is the Capital One Quicksilver Cash Rewards card, which will give you $200 back when you spend $500 in the first three months.
Also, “review your credit card rewards programs to figure out which one will get you the most cash back or points for your school supply purchases,” she advised.

Then use a cash-back site such as CouponCabin.com to earn money back on online purchases, including back-to-school supplies from Target, Walmart and Macy’s.
The experts at RetailMeNot recommend stacking discounts; for example, combining credit card rewards with store coupons and cash-back offers while leveraging free loyalty programs.
For example, Target Circle members can get a 20% discount on college supplies purchased through Aug. 26 and Amazon is offering Prime members 20% off school supply purchases over $50. 
But beyond the big-box stores, you may be able to save even more by shopping gently used sporting goods, school supplies and clothing on resale sites and certified-refurbished electronics from reputable retailers, Woroch said.

You can get half off backpacks and lunch totes on eBay, 75% off clothing at Poshmark and ThredUp, up to 80% off sporting goods at Sideline Swap and as much as 60% off certified-refurbished laptops, tablets and graphing calculators on Amazon Renewed, Woroch said.
Otherwise, shop your own stock, she added. “Tear out pages from half-used notebooks, dust off old folders and binders, and make a pack of crayons or markers from a scattered set. Finally, throw that dirty backpack in the washing machine to make it look new.”
If there’s something you’re still missing, swap gently used supplies with neighbors, join a local Buy Nothing group or set up a clothing or supply exchange through your school, Woroch advised.
Subscribe to CNBC on YouTube. More

Some lawmakers are pushing to increase the IRS reporting threshold for Form 1099-K, which covers third-party business payments.
Before this year, you may have received Form 1099-K if you had more than 200 transactions worth an aggregate above $20,000. But the 2023 threshold is just $600, and even a single transaction can trigger the form.
The threshold doesn’t apply to personal transfers on apps like Venmo and PayPal, such as sending a friend or family member money.

Getty Images

As the year-end approaches, there’s been debate around tax reporting for business transactions on payment apps such as Venmo and PayPal, along with e-commerce companies, such as eBay, Etsy and Poshmark.
Some lawmakers are pushing to increase the IRS reporting threshold for Form 1099-K, which covers third-party business payments. Taxpayers who use a payment app to process transactions for a side hustle or small business, or who sell a product or service through an e-commerce site, will receive a Form 1099-K at tax time detailing that income if their transactions exceed the threshold.

The American Rescue Plan Act of 2021 dramatically reduced the threshold, and now lawmakers are looking to change course.
“There’s bipartisan interest in the backslide because of all the misinformation that’s out there,” said Steve Rosenthal, senior fellow at the Urban-Brookings Tax Policy Center, who addressed the issue on CNBC’s “Squawk Box” last week.
More from Personal Finance:These 3 steps can help you cover rising college costsRather than a recession, we could be in a ‘richcession’ insteadHow to leverage 0% capital gains with lesser-known tax strategy

How the tax rule change affects payment app users

Before this year, you may have received Form 1099-K if you had more than 200 transactions worth an aggregate above $20,000. But the 2023 threshold is just $600, and even a single transaction can trigger the form.
That change is expected to result in a flood of Forms 1099-K in early 2024 when taxpayers typically receive so-called “information returns” from employers and financial institutions. Duplicate copies go to the IRS.

The threshold doesn’t apply to personal transfers on apps like Venmo and PayPal, such as sending a friend or family member money. But experts have expressed concern that some taxpayers may now receive a 1099-K by mistake, creating headaches at tax time.
And given that just one transaction above $600 is enough to trigger the form, even someone who makes a one-off sale of, say, an old couch or hot concert tickets could find themselves with an extra tax document to contend with.
The lower 1099-K reporting thresholds have been controversial amid increased scrutiny of the IRS, particularly among online sellers, gig economy workers and others who worry about confusion and higher taxes.

There’s bipartisan support for the change

The lower Form 1099-K thresholds were originally slated for 2022. But the IRS delayed the rule in late December, to “help smooth the transition and ensure clarity” for taxpayers and professionals.
Now, with the tax season fast approaching, there’s a legislative push from both chambers to increase the 2023 reporting threshold.

The Republican-led House Ways and Means Committee in June approved legislation to revert the reporting thresholds back to 2022 levels. There are also proposals in the Senate, including the Red Tape Reduction Act, introduced by Sens. Sherrod Brown, D-Ohio, and Bill Cassidy, R-La., in May, which aims to raise the threshold to $10,000.
But advocates say the lower 1099-K threshold will reduce taxpayer burden. “[Information returns] don’t actually increase taxes,” said Rosenthal. “They only help determine taxes already owed.”

Form 1099-K has ‘always been problematic’

Meanwhile, there are lingering worries among tax professionals about the 1099-K change. The American Institute of CPAs in June renewed its support for raising the reporting threshold to avoid “significant confusion in the tax system.”
In a June letter endorsing the Senate’s Red Tape Reduction Act, AICPA voiced concerns about an administrative burden for taxpayers and the IRS, especially if Forms 1099-K wrongly include personal transactions, such as gifts or reimbursements.

Form 1099-K has always been problematic.

Phyllis Jo Kubey
Immediate past president of the New York State Society of Enrolled Agents

“Form 1099-K has always been problematic,” said Phyllis Jo Kubey, a New York-based enrolled agent and immediate past president of the New York State Society of Enrolled Agents. “Even in its older iteration with the higher thresholds and number of transactions, a lot of times it just didn’t accurately reflect what should be taxable income.”
For businesses selling goods, she said Form 1099-K may not accurately reflect returns or adjustments. “But if the IRS has a document that says ‘X,’ and you’re saying ‘Y’ on your tax return, it may provoke more scrutiny, which is another level of time, expense and aggravation that people don’t need,” Kubey said.

How to prepare for the 1099-K reporting change

Even if you don’t receive a Form 1099-K, business payments are still taxable, and experts say it’s a good time to start getting organized.
Regardless of the payment platform, it’s important to “be familiar with the systems,” know where to access payment information and to keep your account open, said Albert Campo, a certified public accountant and president of AJC Accounting Services in Manalapan, New Jersey.
“Our biggest piece of advice is to make sure you get the [payment] information as soon as you have it available,” which may save time next filing season, he said. More

Celebration at the Nasdaq during the Datadog IPO, September 19, 2019.
Source: Nasdaq

Selecting the right stocks against a backdrop of mixed economic data and earnings can be challenging for investors. One strategy is to track the investment ideas of Wall Street pros and glean valuable insights into making successful stock decisions.
To that end, TipRanks, a platform that ranks analysts based on their past performance, has identified five stocks well liked by top-ranking analysts. Learn more about these stocks below.

Amazon

E-commerce and cloud computing giant Amazon (AMZN) is this week’s first pick. Earlier this month, the company trounced analysts’ second-quarter earnings estimates and returned to double-digit revenue growth.
DBS analyst Sachin Mittal noted that, after seven quarters of losses due to macro headwinds, the company’s retail segment generated operating profit in the second quarter. The analyst expects the retail segment to be a key driver of AMZN’s share price appreciation from this year onwards.
He also noted that, with 32% share of the global cloud infrastructure market, AWS is the most valuable business for Amazon. It is worth noting that AWS accounted for only about 17% of AMZN’s overall revenue in the second quarter but generated 70% of the company’s profit.
Mittal increased his price target for AMZN to $175 from $150 and reaffirmed a buy rating on the stock, citing the company’s leadership position in e-commerce and dominant position in cloud through AWS.
The analyst is also optimistic about the robust growth opportunity for Amazon’s online advertising business. “More advertisers are turning to AMZN’s retail media network to deceive Apple’s privacy changes and get closer to shoppers,” Mittal said.

Mittal ranks No. 744 among more than 8,500 analysts on TipRanks. His ratings have been successful 75% of the time, with each rating delivering an average return of 18.4%. (See Amazon insider trading activity on TipRanks).

AppLovin

Mobile app technology platform AppLovin (APP) recently impressed Wall Street by surpassing second-quarter earnings estimates. The company also issued better-than-anticipated revenue guidance for the third quarter.
Following the Q2 print, Goldman Sachs analyst Eric Sheridan increased his price target for AppLovin to $50 from $25 and reiterated a buy rating. The analyst noted that the evolution of the company’s software platform drove revenue and margin upside in the second quarter, in the wake of improving industry trends.
The analyst raised his operating estimates to reflect higher revenue growth expectations, fueled by the launch of the company’s latest artificial intelligence (AI)-based advertising engine, Axon 2.0.
Despite near-term concerns about volatility in the advertising and gaming end markets, Sheridan is bullish on the stock. He continues “to look long-term at the collection of businesses under AppLovin as producing above average industry growth and a strong margin profile in a recovered mobile ads/mobile gaming landscape.”  
Sheridan holds the 188th position among more than 8,500 analysts on TipRanks. His ratings have been profitable 61% of the time, with each rating delivering an average return of 13.3%. (See AppLovin Stock Chart on TipRanks)

Datadog

Another Goldman Sachs analyst on this week’s list is Kash Rangan, who remains bullish on Datadog (DDOG) even after the cloud-based IT monitoring and security platform spooked investors with its lackluster revenue outlook for the third quarter. The company also trimmed its full-year revenue guidance.
Rangan noted that the slowdown in spending by Datadog’s larger customers and the pace of net new enterprise additions (80 in Q2 2023 compared to 130 in the previous quarter) disappointed investors.
Nevertheless, the analyst is encouraged by the solid second-quarter bookings, with remaining performance obligations (or RPO) increasing 42% year-over-year compared to the 33% growth seen in the first quarter. The growth in RPO was driven by higher average deal size and contract duration.   
Rangan reiterated a buy rating on DDOG stock with a price target of $114, saying that his long-term thesis remains intact. “Datadog maintains its competitive advantage as an E2E [end-to-end] observability platform as validated by product consolidation driving large deal sizes.”
The analyst also highlighted solid product stickiness, growing platform penetration, and product innovation as reasons for his optimism.
Rangan ranks 601 out of more than 8,500 analysts tracked on TipRanks. Also, 58% percent of his ratings have been profitable with an average return of 8%. (See Datadog’s Blogger Opinions & Sentiment on TipRanks)  

Royal Caribbean

We now move to cruise operator Royal Caribbean (RCL), which recently raised its full-year outlook and reported blockbuster second-quarter earnings. The company is enjoying strong business due to pent-up travel demand.
This week, Tigress Financial analyst Ivan Feinseth reiterated a buy rating on RCL and raised his price target to $139 from $102, citing stellar demand for cruise vacations, the company’s industry-leading position and its solid value proposition.
The analyst thinks that the company is well-positioned to gain from the reprioritization of consumer spending toward travel and experiences following the pandemic. He said that demand in North America remains strong. In particular, Feinseth expects RCL’s “Perfect Day at CocoCay” private island resort to be a key growth driver and industry differentiator, which could fuel significant incremental revenue growth and yields.
“RCL’s current liquidity and ramp-up in cash flow will enable the ongoing funding of its fleet expansion and upgrades, growth initiatives, and balance sheet optimization,” said Feinseth.
Feinseth holds the 266th position among more than 8,500 analysts on TipRanks. His ratings have been profitable 59% of the time, delivering an average return of 11.8%. (See RCL Financial Statements on TipRanks) 

Netflix

We end this week’s list with streaming giant Netflix (NFLX), which reported upbeat second-quarter earnings but fell short of analysts’ revenue expectations.
Despite the decline in NFLX shares since its Q2 results, JPMorgan’s Doug Anmuth reiterated a buy rating on the stock with a price target of $505. The analyst pointed out certain areas that investors are concerned about, including paid sharing monetization and how and when it will boost average revenue per membership.
While paid sharing monetization is happening at a slower pace than Anmuth’s initial forecast, he continues to expect it to be highly accretive to revenue over time. Of the more than 100 million password-sharing users globally, the analyst expects Netflix to monetize 18.8 million by the end of this year, 31 million by the end of 2024 and 38 million by the end of 2025.    
However, Anmuth, who ranks 92 out of more than 8,500 analysts tracked on TipRanks, expects advertising to be a bigger and more reliable revenue stream than paid sharing for Netflix in the future.
Calling Netflix a key beneficiary of the ongoing disruption of linear TV, the analyst said: “The recent launch of NFLX’s ad-supported tier, as well as the broader Paid Sharing launch, should further help re-accelerate subscriber & revenue growth while driving high-margin incremental revenue.”
Anmuth has a success rate of 61% and each of his ratings has returned 17.1%, on average. (See Netflix Hedge Fund Trading Activity on TipRanks). More

As inflation subsides, Social Security beneficiaries may see a lower cost-of-living adjustment in 2024.
But estimates may change in the next two months.
Here’s why a more active hurricane season may be one factor to watch.

Ascentxmedia | Istock | Getty Images

How hurricane season may influence COLA figures

Much of the disparity between the indexes is due to the heavier weighting of oil and gas prices in the CPI-W, according to Mary Johnson, Social Security and Medicare policy analyst at The Senior Citizens League.

Those prices are a key factor to watch in new CPI data to be released in September and October that will affect the final benefit adjustment for 2024.
“The COLA estimate will go up if the price of gasoline jumps considerably,” Johnson said. “The COLA estimate might go down if gas and oil prices drop.”
Hurricanes, in particular, may prompt higher oil and gas prices, she said.

This year’s hurricane season, which lasts from June 1 to Nov. 30, has a 60% chance of being “above normal” due to record high ocean temperatures, according to the National Oceanic and Atmospheric Administration.
“Certainly, hurricane season bears close monitoring, and we are entering the heart of it now,” said AAA spokesman Andrew Gross.
“A major storm impacting the Gulf Coast and nearby refineries will likely lead to a spike in gas prices for a few weeks,” he said.
However, the pressure may be off pump prices at the moment, he said, due to a combination of lower oil prices and flat demand. The national average for a gallon of gas was $3.87 as of Friday, according to AAA.

Seniors still struggling with high inflation

Even if the Social Security COLA rises above the 3% estimate for 2024, it still most likely will not come close to the record 8.7% boost to benefits beneficiaries saw this year.
That may be tough for people age 62 and up who are still grappling with higher costs due to inflation, Johnson said.
“Economists are saying inflation is moderating and things are getting better, but consumers are still faced with high prices,” Johnson said.
Housing, food and health-care costs represent about 80% of the typical seniors’ budget, she said.
Some of those costs don’t typically tend to go back down, particularly with regard to housing, Medicare and health-care costs, Johnson noted. More

The Federal Reserve raised interest rates by a quarter of a percentage point last month in its continued effort to tame inflation.
But the Fed’s future moves are unclear, making the landscape of savings options more confusing for consumers.
Still, it’s a “very good time to take advantage of the higher savings yields,” said Bankrate senior economic analyst Mark Hamrick.

Peopleimages | Istock | Getty Images

1. High-yield savings accounts

The top 1% of savings accounts has an average 4.69% rate, according to DepositAccounts.com. But only 22% of investors are earning 3% or more on their cash, according to a Bankrate survey conducted earlier this year. 

High-yield savings accounts, with easy access to your funds, are worth considering, said Ken Tumin, founder and editor at DepositAccounts.com. 
They’re also safe places to keep your cash. Most savings accounts are covered by the Federal Deposit Insurance Corporation, which generally offers depositors $250,000 of coverage per bank, per account type.
While investors expect the Federal Reserve to start cutting interest rates next year, online savings account rates won’t fall significantly until the policy shifts, he added. 

2. Certificates of deposit

Certificates of deposit — often called CDs — guarantee a set interest rate for a specific period of time, which “can be a good option,” said Tumin. 
Whether an investor decides to go for an online bank, local credit unions or bigger banks, they can get significantly competitive rates. 

The top 1% average for one-year CDs can be as high as 5.55% as of Aug. 18, according to DepositAccounts.com. 
Rates are also typically “locked in,” meaning even if interest rates begin to go down, your investments will keep growing at the same rate until maturity. 

3. Treasury bills

Amid rising interest rates, Treasury bills have also become a competitive option for cash, with yields well above 5%, as of Aug. 18. Backed by the U.S. government, Treasury bills are considered “very safe,” according to Tumin, with terms ranging from one month to one year. 
You can buy Treasury bills, or “T-bills,” through TreasuryDirect, a website managed by the U.S. Department of the Treasury, or through a brokerage account. 
One of the perks of buying through a brokerage account is more liquidity, meaning you can access the money faster if needed. The trade-off is you’ll earn a slightly lower yield compared with that of T-bills purchased through TreasuryDirect.

4. Money market funds

Another option to consider is short-term money market funds, said certified financial planner Chris Mellone, partner at VLP Financial Advisors in Vienna, Virginia. 
Money market mutual funds — which are different from money market deposit accounts — typically invest in shorter-term, lower-credit-risk debt, such as Treasury bills.

Yields are closely tied to the federal funds rate and some of the biggest money market funds are paying north of 5%, as of Aug. 18, according to Crane Data. 
With more interest rate hikes still possible from the Fed, Mellone currently prefers short-term money market funds over CDs for higher rates and more flexibility. “It’s really the best of both worlds,” he said.
However, there are a couple of downsides. Although money market funds aren’t likely to lose value, declines have happened, and investors should know there’s no FDIC protection.
For more on savings accounts, check out CNBC Select’s recent ranking on the best high-yield savings accounts. More