Where to invest your money at a time of high interest rates

Falling stocks and volatile capital markets have experts recommending that anxious Americans park their money in less risky instruments such as money markets, certificates of deposit and high-yield savings accounts.

These safer investments are paying out returns that can top 5%, providing solid footing as the Federal Reserve ponders another rate hike.

Lisa Chastain, a Las Vegas-based financial coach, said Americans would be wise to put their money in high-yield savings accounts.

“High-yield savings accounts have the highest returns we’ve seen since before the pandemic,” she told The Post on Thursday.

Chastain also endorsed CDs and Treasury bonds, saying: “This could be a great option for households who want to put their cash somewhere but don’t want to invest it in the market.”

Ted Jenkin, the co-founder of Atlanta-based Exit Stage Left Advisors, told The Post that FDIC-backed institutions like Bread Financial are offering high-yield savings accounts that pay over 5%.

Shinobu Hindert, a San Diego-based financial planner and author of “Investing Is Your Superpower: A Step-by-Step Guide to Creating the Lifestyle You’ve Always Wanted,” told The Post that government-backed short-term debt “is the safest type of interest you can get.”

She cited Fidelity’s SPAXX, a low-risk government money market fund that has boasted average annual returns of 4.29%.

High-interest rates show no signs of abating anytime soon as economic headwinds such as high bond yields, rising mortgage rates, an ongoing auto workers strike, soaring energy costs, political gridlock in Washington, DC, and burgeoning budget deficits stoke uncertainty in the capital markets.

For those willing to take on more risk, Hindert suggested stock mutual funds or exchange-traded funds as good options, especially if you “don’t need to access your money for a few years.”

Hindert told The Post that CDs are ideal “if you are able to lock your money in and don’t need liquidity.”

Annual returns on a one-year CD can be found for around 5% by shopping around, she said.

Hindert also recommended high-yield savings accounts from online banks such as SoFi and Ally that pay anywhere between 4% and 4.5%.

“For everyday investors looking for a safe place to park their cash in safer investments, many banks are offering great rates right now,” Hindert said.