With annual inflation at 8.3% and interest rates on accounts at most major banks paying less than 1%, the value of your cash is quickly deteriorating.

It is essential to keep a portion of your money out of the stock market in safer, fixed-income investments. Fortunately, with recent increases in the federal funds rate and more increases to come, fixed-income options have become more appealing. Many low-risk, fixed-income investments are offering higher interest rates that will help you combat inflation.

It is essential to maintain liquid reserves to cover short-term expenses. The best option for money needed in the next few months may be in an account at your local bank. However, for fixed-income money that is not needed right away, money positioned for emergencies and as a buffer against stock market fluctuations, consider better-paying options outside your local bank.

For liquid money that you want to access quickly, consider a savings or money market account at an online bank. According to Bankrate. com, several FDIC insured banks, including Capital One, Barclays and Citizen, are currently offering annual rates of around 2% to 2.35%. The key is to work only with banks that are FDIC insured — FDIC insurance covers accounts up to $250,000.

If you are willing to lock up your money for six months to a year, your best option may be a Certificate of Deposit (CD). TD Ameritrade and

Schwab are currently offering six-month and one-year brokered CDS with FDIC insured banks that pay around 4% annually. Brokered CDS are issued by a variety of institutions. They are similar to CD’S purchased directly from a bank except they trade on the open market. If you sell prior to maturity, proceeds may be more or less than your principal.

Another option is to purchase a U.S. Treasury bill or note. U.S. Treasuries can be purchased at banks, brokerages or directly through www.treasurydirect.gov. Six-month Treasury bills are currently paying 3.85% and two-year Treasury notes are paying 3.96%. U.S. Treasuries are safe investments backed by the U.S. Treasury Department.

If you have a longer time horizon, consider I-bonds. I bonds are savings bonds issued by the U.S. government that currently pay 9.62% annually. The interest rate paid on I bonds is based on the Consumer Price Index and is reset every six months, in May and November. I bonds have a maturity of 30 years, but you are not required to hold them until maturity. You must hold them for 12 months and if you sell them after 12 months, but before five years, you will forfeit the previous three months of interest.

An individual is limited to the electronic purchase of up to $10,000 in I bonds within a calendar year and they can be purchased by opening an account at www. treasurydirect.gov. Interest from Treasury bills, Treasury notes and I bonds are subject to federal tax but not state or local tax.