Yields on cash are cooling, but investors who want to earn a little interest on money they need to keep safe still have options in 2025. A one-year certificate of deposit from Bread Financial – which once offered an annual percentage yield of 5.25% – now pays 4.3%. Bond yields and bond prices move in opposite directions so, for example, when prices rise, yields fall. Ultrashort bond funds have the benefit of limited duration exposure – meaning that their prices aren't very sensitive to rate fluctuations. For those with longer time horizons who are willing to go out on the yield curve a bit, short-term bond funds might also be a fit.

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Persons: Wells, Michael Kaye, Adam Reinert, Banks, Arvind Narayanan, Vanguard's, Narayanan Organizations: Federal Reserve, Marshall Financial, Bond, SEC, Fund Locations: Doylestown , Pennsylvania