Reports suggest that interest rates have increased slowly in the last few years but still they’re being considered as low as per historic standards. You may have saved enough money on your student loan refinance or mortgage but are you sure you’re earning a noteworthy return when you’re stashing the cash in your savings accounts? Do you think your bank’s savings account is offering you a lucrative return?

Money which you will require within the next 5 years should not be invested in the stock market as the time span is not long enough for you to recover in case you face a downturn. So, as this option is ticked off, you need to understand the few main accounts where you can park your cash for short-term savings. Let’s take a look at them.

1: Money market accounts or online savings – When you need money in less than 2 years

You can use the savings account search tool of Nerd Wallet to find out the credit unions and banks which pay the most competitive interest rates of 1% or more. You might not feel that this is much but if you compare with 0.06% which is the present average rate on savings accounts, you will know that it’s way more than that. Same is true with the money market accounts. Unlike savings, the money market accounts have higher deposits and they come with debit cards and checks but both are insured by FDIC.

2: Short term bond funds – When you need funds in 2-3 years

With short term bonds, you can lend money to the government or to a company which pays back the interest rate. The borrowers may default and if the interest rates increase, the values of the bonds may plummet. If you want to diminish the chances of a default, you should select those bond funds which are owned by government and which are also issued by the same. Here too, the interest rates are 1% or something and a bit more for those who are eager to take the risk.

3: Peer-to-peer loans – When you need cash in 3-5 years

Online lenders like Lending Club and Prosper are options for the investors who are willing to lend cash to borrowers who require cash to finance things like medical bills and home renovations. If you consider both the online sites mentioned above, both of them classify creditworthiness and they lend borrowers with good credit score. You will earn less in the form of interest rates depending on the choice of candidates.

4: Pay off debt – When you require devoting money towards high interest debt

Would you like to make double-digit returns on investment? If answered yes, then pay back your high interest rate debt. When you have to repay high interest debt or costly debt, the return is equivalent to the rate which you would be paying slowly over time.

Therefore, if you wish to save money for the short term, you can choose any of the above mentioned account options. Grow your account and build up your savings account to have a cushion for life.