With interest rates on savings ate rock bottom low, check out U.S. Government I-bonds.
NEWS: The initial interest rate on new Series I savings bonds is the second-highest ever: 7.12 percent. You can buy I bonds at that rate through April 2022. Details at: https://www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm
Be sure you understand how I-bonds work. You can’t access your funds in the first 12 months. If you cash out before 5 years, you forfeit 3 months of interest.
But the advantage is that you do not pay state income taxes on the interest and you can delay paying federal interest until you cash out, a big advantage over traditional savings options like CDs and savings accounts.
Source: Financial Planning for Women