Jenna Lofton’s Best Short Term Investments – Massive 2025 Update

Hey everyone! Jenna here, and let me tell you, I am absolutely fired up about what’s happening in the short-term investment space right now. September 2025 is honestly one of those rare moments where us savers are sitting pretty with some genuinely exciting opportunities.

You know how I’m always hunting for those sweet spots where safety meets solid returns? Well, we’re living in one right now. After three Fed rate cuts in late 2024, rates have stabilized, and we’re still seeing yields that would have made our grandparents weep with joy. I’m talking 4%+ APYs on completely safe, FDIC-insured accounts!

But here’s the thing—and this is crucial—the Fed is expected to potentially cut rates again at their September meeting. That means the clock is ticking on these elevated rates. So if you’ve been sitting on cash or settling for measly returns, now is absolutely the time to act.

Why September 2025 is Money-Making Magic

Let me paint you the perfect picture of where we are right now. The Federal Reserve has kept rates steady for five consecutive meetings in 2025, holding at 4.25%-4.50%. This sweet spot means:

High-yield savings accounts are still crushing it with top rates hovering around 4.46% APY CD rates remain competitive at 4.45% on the best terms Money market accounts are paying out handsomely for immediate access Treasury bills are offering solid, tax-advantaged returns

Compare this to the national average savings rate of just 0.39%, and you can see why I’m practically vibrating with excitement. We’re talking about earning more than 10 times the average rate!

High-Yield Savings Accounts

Rate Range: 4.20% – 4.46% APY

Let’s start with the absolute MVP of short-term investing right now. High-yield savings accounts are giving you serious returns while keeping your money completely liquid and FDIC-insured up to $250,000.

Why I’m obsessed with these accounts:

Axos Bank is leading the pack at 4.46% APY, but you’ll need to meet some requirements—either maintain $1,500 average daily balance with $1,500 monthly direct deposits, or keep $5,000 with $5,000 monthly transfers.

Newtek Bank and Zynlo Bank are both offering 4.35% APY with more straightforward requirements.

Western Alliance Bank offers one of the highest rates with just a $1 minimum deposit—perfect if you’re just getting started.

The beauty here? Your money is completely safe, you can access it anytime, and you’re earning more than most people made in CDs just a few years ago. Online banks are dominating this space because they don’t have the overhead of physical branches, so they can pass those savings directly to you.

Certificates of Deposit (CDs)

Rate Range: 4.00% – 4.60% APY

CDs are having their moment, and honestly, if you can afford to lock up your money for a specific term, the returns are incredibly attractive right now.

My top CD picks for September 2025:

E*TRADE is offering 4.45% APY on 6-month CDs with zero minimum deposit. This is absolutely stunning—you’re getting top-tier rates without having to commit huge amounts of money.

Merchants Bank of Indiana has a 4.60% APY on 1-year CDs with just a $1,000 minimum. If you can commit for a year, this might be the best bang for your buck.

Marcus by Goldman Sachs offers 4.40% APY on 6-month CDs with a $500 minimum, plus they have solid customer service and a trusted name.

Here’s my strategy: With potential Fed rate cuts looming, shorter-term CDs (3-12 months) are your best bet. You’re locking in today’s high rates without committing too long-term. Plus, if rates somehow go higher, you’re not stuck for years.

Pro tip: Consider a CD ladder strategy. Split your money across 6-month, 12-month, and 18-month CDs. As each matures, you can reassess the market and either reinvest or move to higher-yielding options.

Money Market Accounts

Rate Range: 3.80% – 4.30% APY

Money market accounts are like the Swiss Army knife of banking—they give you higher yields than regular savings while offering checking account features like debit cards and check-writing privileges.

What makes them special:

FDIC-insured up to $250,000 just like savings accounts Check-writing and debit card access for when you need immediate liquidity Higher yields than traditional savings while maintaining flexibility No penalties for accessing your money unlike CDs

The rates aren’t quite as high as the best high-yield savings accounts, but the added convenience can be worth it if you need more frequent access to your funds.

Treasury Bills (T-Bills)

Current Rates: 4.10% – 4.50% depending on term

T-Bills are the government’s way of borrowing your money, and right now they’re paying you handsomely for the privilege. These are as safe as investments get—backed by the full faith and credit of the U.S. government.

Why T-Bills deserve a spot in your portfolio:

Tax advantages: The interest is exempt from state and local taxes, which can boost your effective return significantly depending on where you live.

Flexible terms: You can get T-Bills for 4 weeks, 8 weeks, 13 weeks, 26 weeks, or 52 weeks.

Easy to buy: Purchase directly through TreasuryDirect.gov or through any major brokerage.

The catch: You buy them at a discount and receive full face value at maturity. So if you buy a $1,000 T-Bill for $960, you pocket the $40 difference when it matures.

Short-Term Bond Funds and ETFs

Average Yields: 3.5% – 4.2%

If you want professional management and diversification without giving up liquidity, short-term bond funds are fantastic. These funds invest in bonds with maturities under 5 years, giving you exposure to both government and corporate debt.

My favorite picks:

SPDR Portfolio Short-Term Corporate Bond ETF (SPSB) – Low expense ratio and solid corporate bond exposure

Vanguard Short-Term Bond ETF (BSV) – Mix of government and corporate bonds with Vanguard’s legendary low fees

iShares 1-5 Year Investment Grade Corporate Bond ETF – Focus on high-quality corporate debt

These aren’t FDIC-insured like savings accounts, but they’re still very low risk and offer daily liquidity. You can buy and sell during market hours just like stocks.

Ultra Short-Term Bond ETFs

Current Yields: 4.00% – 4.30%

These are the specialized tools for serious short-term investors. Ultra short-term bond ETFs focus on bonds with maturities under one year—basically turbocharged money market funds with slightly higher yields.

They offer excellent liquidity since you can trade them throughout the day, and the yields are typically higher than money market funds. The downside? Unlike savings accounts, these can fluctuate in value based on interest rate movements.

I Bonds – The Inflation Fighter

Current Rate: Composite rate adjusts every 6 months

I Bonds deserve special mention because they’re designed specifically to protect against inflation. They combine a fixed rate (set when you buy) with an inflation rate that adjusts every six months.

The I Bond advantage:

Inflation protection that adjusts automatically Tax benefits – federal tax on interest can be deferred $10,000 annual purchase limit per person (plus $5,000 with tax refund) Must hold for at least one year, lose 3 months interest if redeemed before 5 years

Money Market Mutual Funds

Yields: 4.20% – 4.80%

Don’t confuse these with money market accounts! Money market mutual funds invest in short-term, high-quality debt instruments. They’re not FDIC-insured, but they’re extremely stable and often offer higher yields than bank accounts.

Best for: Investors who want higher yields than savings accounts but don’t mind giving up FDIC insurance for potential extra return.

What I’d Actually Do With $50K Right Now

Okay, so you want to know what I’d really do? Here’s my honest breakdown if someone handed me fifty grand tomorrow:

$15K in Axos savings at 4.46% – Yeah, I’ll jump through their hoops for that rate. This is emergency money that needs to be available immediately.

$20K split between two 6-month CDs – Probably E*TRADE and Marcus, just to spread it around a bit.

$10K in T-Bills – Mix of 13-week and 26-week. I like the tax break and they’re stupid safe.

$5K to play with – Maybe an ultra-short bond ETF or just keep it liquid to see what happens with rates.

The Fed Thing Everyone’s Worried About

Look, Powell’s been pretty clear that they’re watching inflation and employment data. If things keep cooling off, they’ll probably cut rates in September. When that happens, all these beautiful rates start coming down.

I’m not saying panic and lock everything up for five years. But if you’ve been procrastinating on moving money out of your 0.01% checking account, now would be a good time to stop procrastinating.

What Not to Fall For

Real quick, some red flags I see people falling for:

Those “intro rate” accounts that give you 5% for three months then drop to 1% Anything that sounds too good to be true (looking at you, random crypto “savings” accounts) Banks that require minimum balances you can’t actually maintain Places advertising crazy rates but when you read the fine print, it’s only on the first $500

The Bottom Line From Someone Who Does This Every Day

September 2025 is weird in a good way. We’ve got actually decent rates on boring, safe stuff. It won’t last forever – it never does. But right now, you can get north of 4% on your emergency fund, which honestly seemed impossible a few years ago.

Don’t overthink it. Pick something that matches when you need the money, make sure it’s FDIC insured, and stop letting your cash earn nothing. Your future self will buy you a coffee for taking action today instead of waiting for the “perfect” opportunity.

And seriously, even if you just move your money from a regular bank to a high-yield savings account, you’re probably tripling or quadrupling your interest income. Sometimes the best investment move is just not being lazy.

Disclaimer: I am a financial planner, not a licensed investment advisor. This is not financial advice, and you should always do your own research and consider consulting with a qualified professional before making investment decisions. Past performance doesn’t guarantee future results, and all investments carry some level of risk.