Where To Get 4% Returns On Idle Cash

If you want to earn around 4% returns on money that is just lying idle, there are several safe and low-risk options to choose from. These options help your cash grow while keeping it easy to access when needed. Interest rates may change over time, so always check the latest rates.

Best Low-Risk Options for Idle Cash

1. High-Yield Savings Accounts (HYSAs)
These are online savings accounts that offer much higher interest than regular bank savings accounts.
Pros: Your money is safe, easy to withdraw anytime, and earns better interest.
Cons: Interest rates can go up or down.

2. Fixed Deposits (FDs) / Certificates of Deposit (CDs)
You invest your money for a fixed period, like 6 months or 1 year, at a fixed interest rate.
Pros: Guaranteed returns and stable income.
Cons: You may pay a penalty if you withdraw early.

3. Liquid Mutual Funds
These funds invest in short-term instruments like treasury bills and commercial papers.
Pros: Can offer better returns than savings accounts, low risk, and easy to withdraw.
Cons: Returns are not guaranteed and depend on market conditions.

4. Treasury Bills & Government Bonds
These are loans you give to the government, which are considered very safe.
Pros: Backed by the government and low risk.
Cons: Returns may be lower and require a brokerage account.