So where can you put your savings today?
Look for higher rates at online banks, money market accounts, certificates of deposit (18 months is the sweet spot today). Consider building a ladder of 18 month CDs.
Buy highly rated corporate bonds in bond funds. Avoid “high yield” junk bond funds which are risky and could lose value quickly.
Vanguard Short-Term Corporate Bond (VCSH) is an investment grade ETF (exchange-traded fund) charges only 0.07% expense ratio and is very highly rated by Morningstar.The fund is currently yielding 3%.
Source: “Investment strategies in a time of low rates” by Michael A. Polluck writing in The Wall Street Journal, April 22, 2019.