Image source: Getty Images

A year ago today, inflation was still pretty rampant. Many people could barely cover their living costs. But in recent months, inflation has been cooling, which means you may be enjoying more wiggle room in your budget.

You might also have some spare cash to work with. If so, here are a few great places to consider putting it this October.

1. A savings account

Any funds you have earmarked for emergency expenses should sit in a savings account. And if you’re not sure what you want to use your money for, a savings account is a good bet because it gives you the flexibility to take withdrawals at any time.

Now, you may have heard that interest rates are falling, and that’s true. It’s also something that’s likely to increasingly impact savings accounts in the coming months.

But the good news is that savings account rates are currently still pretty strong. And if you’re not happy with the rate you’re getting on your savings, check out our list of top savings accounts today.

2. A CD

The nice thing about certificates of deposit (CDs) is that they allow you to lock in a guaranteed interest rate that remains in place until their maturity date. That’s important at a time when interest rates are falling.

A few months ago, it was easy enough to find a 5% CD. Now, those are a bit harder to come by. But many CDs are still paying close to 5%.

That may not be the case for much longer, though. So if you have money you’re saving for a shorter-term goal, a CD could be a good bet. Click here to view some of the top CD rates today.

3. A brokerage account

A CD is a great place to put money you’re willing to part with for a year or two — or even four or five. But if you have money you’re earmarking for a goal that’s way off in the future, like paying for college or funding your retirement, then investing it is a smart bet.

While some CDs may be paying close to 5% today, the S&P 500’s average return over the past 50 years is 10%, accounting for both strong and weak years. And remember, while you can get almost 5% out of a CD today, that may not be the case for much longer. On a long-term basis, investing your money is your best bet for growing it into a larger sum.

In fact, if you invest $1,000 today and score a 10% return on your money every year over the next 40 years, you’ll end up with a little over $45,000. If you like the sound of that, check out our list of the best brokerage accounts.

It’s a great thing to have extra money to work with. Now all you need to do is choose the right home so your money benefits you even more.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.