Saving money is vital to maintaining financial security and achieving your goals in life. Knowing where to stash your savings, however, is also an important skill to master.

Many decide to stash their hard-earned dollars into a savings account. The problem, unfortunately, is the pitiful interest rate. The national average savings interest rate currently stands at 0.06 percent. Some brick-and-mortar banks even offer rates as low as 0.01 percent.

Instead of a traditional savings account, you should put your extra money in a better place, ideally one that will offer good returns.

If you’re not sure where to stash your cash, consider the following options:

Some people have a high tolerance to risk.

One popular investment option, especially during difficult economic times, is gold. Some investors look at this metal as a safe place to park their extra dollars while others are a bit more skeptical.

Another example is stocks. Although they can result in high returns, investors will have to tolerate the unavoidable ups and downs of the market. A great place to get started is an index fund, which typically consists of diversified companies across every sector.

Before you invest your money in risky options, you’ll need to do a careful assessment to determine if a particular investment is right for you. If you want to invest your extra money in a franchise, for instance, you go beyond asking, “Should I invest in a lawn service franchise?”

Instead, look at the costs involved in this investment along with your current financial situation. You also need to determine your overall risk tolerance.

Saving for retirement is a critical step in maintaining and achieving good financial health. An individual retirement account, or IRA, allows you to save for retirement separately from your employer. This account is useful if your company does not provide a retirement plan or if you prefer additional retirement savings on top of what your employer is giving you.

IRA comes in two types: Roth and Traditional IRA.

When you have a Roth IRA, you put in after-tax dollars to your retirement account. The money in your account will grow tax-free. On the other hand, a traditional IRA won’t tax your contributions immediately. You will, however, pay taxes when you withdraw your funds at a later date.

Each option has its pros and cons. Overall, people see them as an excellent way to save for the future and prepare for retirement. Just keep in mind that the money you put in is for retirement – unless you have an outstanding and urgent circumstance that would prompt you to withdraw your funds early.

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A peer-to-peer loan is a personal loan funded by individual investors instead of traditional financial institutions like banks. Online lenders offer a platform for borrowers and investors to manage their individual loans.

If you take on the role of the investor, you put up a certain amount of money, which the online lender loans to one or more borrowers. These borrowers will then pay you back in regular installments with interest.

Peer-to-peer lending is usually a win-win scenario. Borrowers enjoy an interest rate on their loan that’s usually lower than bank-offered credit cards and loans. Investors, on the other hand, obtain a higher rate of return on their money than many banking products offer.

Take note, though, that peer-to-peer landing won’t provide you with fast access to cash if you need liquidity. The terms of the loan typically state that a borrower has a certain amount of time to pay off the loan. During this time, the investor will receive monthly installments instead of the whole loan amount.

Many savings and checking accounts offer deposit insurance up to $250,000. If you need to stash more than $250,000, however, you might want to consider U.S. Treasury Bills, also known as T-bills. These are short-term and federal debt obligations that have a maturity of one year or less. You’ll earn more interest when the T-bill has a longer maturity.

You can purchase T-bills on the secondary market, such as through an investment bank or a broker. These markets sell the treasury bills to investors for less than face value.

Remember that T-bills are U.S. government debt. This means that you won’t lose your principal. If you want a higher degree of safety on your money, you’ll want to invest it in a T-bill.

Don’t simply stash your extra cash in your savings account and call it a day. Consider investing it in other places to grow your wealth. If you need assistance on where you should put your money, don’t hesitate to ask a trusted financial planner or advisor.