High-yield savings accounts have long been the default choice for risk-averse savers. Leading accounts offer roughly 4% to 4.5% APY in August 2026, with the strongest reaching 4.50% APY and a strong no-fee benchmark sitting around 4.20% APY. With headline CPI running at 3.5% year over year in the latest available reading, the strongest HYSAs currently outpace inflation before tax, although lower-rate accounts may not. What a savings account does not offer is exposure to property appreciation or the tax attributes that come with real-estate ownership.
For investors with longer time horizons, fractional real estate and other alternative investments offer higher income or long-term total-return potential. This guide examines seven investments that may deliver more than a high-yield savings account over time, starting with mogul, a fractional real estate platform club founded by former Goldman Sachs executives.
Disclaimer: The information provided in this guide is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult with a licensed professional before making any financial or investment decisions.
Key Takeaways
Leading high-yield savings accounts pay roughly 4% to 4.5% APY in August 2026. At the top of the market that is 4.50% APY, which currently exceeds the latest 3.5% headline CPI reading before tax, but offers no exposure to property appreciation or real-estate tax attributes
Fractional real estate offers materially higher return potential: mogul reports 18.8% average annual returns (IRR) across its portfolio, compared with roughly 9% for the S\&P 500 and roughly four times the current top HYSA APY, with the potential for monthly income distributions. IRR and APY are different measurements, and real estate returns are not guaranteed
Ownership structure drives tax treatment. Directly held rentals are generally reported on Schedule E, while LLC and partnership interests report income and deductions on Schedule K-1. Depreciation and other attributes may pass through, subject to applicable IRS limitations
Holding periods vary considerably. Some private real-estate investments are structured for multi-year commitments, while others in this list range from one-month Notes to quarterly repurchase windows or secondary-market trading. Savings accounts are built for immediate access, while these investments are designed to build wealth over longer horizons
Institutional-grade deal selection matters: mogul's team of former Goldman Sachs executives applies a 12% minimum projected IRR hurdle, inclusive of one-time fees, with less than 1% of reviewed properties making it onto the platform
Single-family rentals have outperformed on a risk-adjusted basis: the company reports that single-family rentals returned 13.8% (IRR) from 1993 to 2023 versus 9.8% for the S\&P 500, with 45% less volatility, drawing on data from NAREIT, the US Federal Reserve, the Case-Shiller Home Index, and Bloomberg
1. mogul (Fractional Real Estate)
mogul delivers a fractional real estate investment platform that provides institutional-quality deal access to everyday investors. Founded by former Goldman Sachs executives with $10 billion+ in investing experience, the platform currently reports $90 million+ in assets and 40,000+ investors as of June 1, 2026.
How Does mogul Work?
mogul acquires income-producing single-family rental properties and places each into a state-registered LLC. Investors then purchase membership interests in the property-specific investment-club LLC that owns the home, rather than being placed individually on the deed. This structure provides property-level economic exposure, including rental-income participation, appreciation exposure, voting rights, and potential pass-through tax benefits, without the headaches of property management, tenant calls, or maintenance responsibilities.
Key Features
Monthly distributions: once a property is operational and generating distributable net rental income, mogul generally credits an investor's proportionate share monthly, with payment scheduled for the second Tuesday of the following month. Amounts vary with actual property performance after expenses, fees, and reserves
Institutional selection: less than 1% of properties reviewed pass mogul's diligence process
12% minimum projected IRR hurdle: every property must meet a 12% minimum projected IRR threshold, inclusive of one-time fees, as a screening standard applied during underwriting
One-time 5% capitalized deal fee: mogul's upfront charge is a 5% fee capitalized in the deal, structured as a 3% platform fee plus a 2% property setup/rent-ready fee where applicable
2.5% ongoing fee on collected rent: mogul charges 2.5% of collected rental income on an ongoing basis, and does not charge a recurring AUM-based management fee on invested principal
Property-specific LLC ownership: investors receive K-1s and applicable tax forms, and depreciation and other tax items may pass through depending on the offering and the investor's individual tax circumstances
First $10k protection for new members: mogul covers up to $10,000 in losses. If the total return on a new member's first 7 days of investments is a loss of $10,000 in the first year, mogul pays that $10,000 back from its own balance sheet capital
Give $50, Get $50: refer a friend and get $50 when they invest
Performance
mogul reports 18.8% average annual returns (IRR) across its portfolio, with individual properties displaying 15-20% annual return targets. Those targets are property-specific IRR underwriting targets. The platform reports a 2.6% record monthly yield as of June 1, 2026, and 90% of mogul investors invest a second time, committing 3x their first investment when they do.
Best For: Investors seeking high return potential with the possibility of monthly income, who are comfortable with mogul's stated 3-10 year property hold period (with five to seven years described as typical) and want property-specific LLC ownership with potential tax advantages through institutional-grade deal selection.
2. Treasury I Bonds
Treasury I Bonds offer government-backed, inflation-linked interest, making them a compelling savings alternative for conservative investors. At 4.26%, current I Bonds beat many savings accounts but not the very highest August 2026 HYSAs at 4.50% APY. Their principal attraction is inflation-linked, government-backed interest rather than maximum current yield.
Key Features
Current composite rate: 4.26% for bonds purchased May through October 2026, which includes a 0.90% fixed component
Inflation adjustment: the inflation component recalculates every six months based on CPI
Government backing: backed by the full faith and credit of the U.S. government
State tax exemption: interest is exempt from state and local taxes
Considerations
Purchase limits: $10,000 per person annually for electronic purchases
12-month lock-up: cannot redeem during the first year
Early withdrawal penalty: forfeit the most recent 3 months of interest if redeemed before 5 years
Limited growth potential: return comes from a fixed rate plus a semiannual inflation component. I Bonds are nonmarketable and therefore do not provide market-price appreciation
Best For: Risk-averse investors seeking inflation protection for 1-5 year time horizons who prioritize capital preservation over growth.
3. Dividend Stocks & REITs
Publicly traded dividend stocks and REITs offer income potential with market liquidity, serving as a middle ground between savings accounts and private real estate. On current income yield alone, broad equity indexes and the REIT sector sit below the top HYSA. The case for them rests on total return, meaning income plus price appreciation, which carries principal risk.
Performance Data (2026)
S\&P 500 dividend yield: approximately 1.03% as of June 30, 2026
Dividend ETFs: yields vary widely by fund, and "dividend ETFs" is not a defined index or product category, so category-wide ranges are not meaningful. The case for these funds is potential total return, not a guaranteed yield advantage over a 4.50% HYSA
Equity REITs: the FTSE Nareit All Equity REITs Index yielded approximately 3.68% at June 30, 2026, and individual REIT yields vary substantially
REIT total return: FTSE Nareit All Equity REITs returned 14.9% year to date through June 30, 2026, after roughly 13.1% year to date through April
Key Benefits
High liquidity: buy and sell instantly through brokerage accounts
Diversification through funds: broad dividend-stock and REIT ETFs offer exposure across sectors and geographies, and returns vary substantially between REIT property sectors, so individual securities can remain highly concentrated
Dividend reinvestment: compound returns through DRIP programs
Lower minimums: start with single share purchases
Trade-offs
Market volatility: subject to daily price swings and broader market corrections
Interest rate sensitivity: REITs often decline when rates rise
Tax treatment varies: distributions may be ordinary income, qualified dividends, capital-gain distributions, or return of capital, depending on the security and the distribution
No direct title to individual properties: investors own shares of the company, REIT, or ETF rather than owning the underlying real estate directly
Best For: Investors wanting public market liquidity with higher income than a broad index fund, who can tolerate meaningful volatility and are investing for total return rather than a guaranteed yield premium over savings.
4. Fundrise
Fundrise operates a private-investment platform whose real-estate offerings include diversified real-estate funds and eREITs, pooling investor capital into portfolios through a fund structure.
Key Features
$10 minimum investment: taxable accounts start at $10
Operating history: founded in 2012
Diversified portfolios: exposure across multiple property types and markets, with additional direct and private offerings available on the platform
Non-accredited access: non-accredited investors can invest on Fundrise, although some funds and private offerings are restricted to accredited investors, including Regulation D opportunities
Performance
Fundrise's results are fund-specific and historical rather than forward-looking targets. For the 12 months through June 30, 2026, Fundrise reported approximately 6.39% average annual total return for the Flagship Real Estate Fund and 9.11% for the Income Real Estate Fund. For the first half of 2026, the respective average net returns were approximately 6.18% and 4.90%. Funds managed by Fundrise Advisors generally pay quarterly distributions.
Fee Structure
Annual fees on the applicable real-estate funds run approximately 1%, consisting of 0.85% asset management plus 0.15% advisory, which compounds over multi-year holding periods.
Liquidity
The current Flagship Fund and Income Fund offer quarterly repurchase opportunities without early-withdrawal penalties, subject to applicable fund terms. Liquidity remains substantially lower than a savings account.
Best For: Hands-off investors wanting broad diversification with a low entry point who prefer pooled fund structures.
5. Groundfloor
Groundfloor provides real estate debt investments, allowing investors to fund short-term loans to property developers and renovators.
Key Features
$10 minimum on individual Loans: individual real-estate Loans can start at $10; current standard Notes start at $100, with the 12-month Signature Note requiring $1,000
Short-term loans: typical 6-18 month terms on bridge and fix-and-flip lending products
Zero investor fees on Loans and Notes: borrowers pay all costs on these products
Non-accredited access: current Notes are Reg A offerings available to accredited and non-accredited investors
Historical returns: Groundfloor reports that it has averaged approximately 10% annual returns for investors over ten years
Groundfloor Notes
The platform also offers fixed-term notes with predictable yields. Rates below are Groundfloor's current standard Note rate cards, stated as current as of May 2026:
1-Month Note: 5.0% fixed APR (minimum $100)
3-Month Note: 6.0% fixed APR (minimum $100)
12-Month Signature Note: 8.5% fixed APR (minimum $1,000)
Rate conventions can vary by product across the category.
Considerations
Debt exposure on Loans and Notes: for individual Groundfloor Loans and Notes, investors have debt exposure rather than direct property equity, so they do not participate directly in property appreciation. Groundfloor also lists other products, including an actively managed real-estate portfolio and other private-market offerings
Loan performance varies: outcomes differ by borrower and project
Lender position: on Loans and Notes, you are a lender, not an owner
Best For: Investors preferring debt exposure with shorter commitments who prioritize the absence of investor fees on Loans and Notes and can evaluate individual loan opportunities.
6. Lofty
Lofty offers tokenized real estate ownership using blockchain technology, providing a secondary marketplace for trading property shares.
Key Features
Low entry point: share prices vary by property and are often around $50 or less
Daily distributions: daily rental payouts, more frequent than quarterly alternatives
Secondary marketplace: Lofty provides a 24/7 secondary exchange and no minimum holding period, although sale price and execution depend on market demand
Blockchain-based: Algorand tokenization for transparency
Performance
Lofty reports a 9.2% average marketplace rental yield as of May 2026. This is rental yield rather than total return. It excludes appreciation and trading results, results vary by property, and transaction fees apply.
Trade-offs
Trading fees: 2.5% on purchases and 3% on sales
Liquidity depends on demand: Lofty's own 2026 material recognizes that fractional-real-estate liquidity depends on secondary-market demand, so the ability to list an asset is not the same as execution at a desired price
Blockchain-based ownership: suited to investors comfortable with digital asset concepts
Operating history: a more recently launched platform in the category
Best For: Tech-savvy investors who want the option to trade real estate positions actively and are comfortable with blockchain-based ownership and market-dependent execution.
7. EquityMultiple & Willow Wealth (Accredited Platforms)
For accredited investors, EquityMultiple and Willow Wealth (formerly Yieldstreet) offer access to commercial real estate and alternative assets.
EquityMultiple
$5,000 minimum: minimums start at $5,000, and direct-project minimums commonly range from $10,000 to $30,000
Commercial focus: office, multifamily, industrial properties
Alpine Notes: current offerings run roughly 6.10% to 7.35% APY with 3-, 6-, and 9-month terms
Accreditation required: SEC-defined accredited investors only
Willow Wealth (formerly Yieldstreet)
Name change: Yieldstreet officially became Willow Wealth in November 2025
Minimums vary by product: first investments typically start at $5,000, while the Alternative Income Fund requires $10,000 and Willow 360 requires $25,000
Multi-asset alternatives: private credit, real estate, private equity, art, legal finance, and other strategies
Fees vary materially by product: Willow 360 charges a 1.25% advisory fee plus approximately 0.175% in expenses, while third-party evergreen funds have manager-set expense ratios and may carry one-time commitment or sales fees
Yields vary by offering: current Short Term Note yields vary by offering, and Willow is included here for its breadth of multi-asset access rather than a stated current-yield advantage over the 4.50% top HYSA benchmark
Accreditation: the platform is principally aimed at accredited investors
Considerations
Higher minimums: accredited-only platforms often start around $5,000 and can require $10,000 or $25,000, versus as little as $10 to $100 for several non-accredited alternatives in this list
Accreditation barrier: SEC analysis estimates that 18.5% of U.S. households met the accredited-investor income or net-worth criteria in its latest available household dataset. Additional investors may qualify through professional certifications and other SEC-recognized pathways
Liquidity varies substantially by product: from 3- to 9-month private notes and Willow Short Term Notes to multi-year individual investments. Some evergreen products provide limited periodic repurchase opportunities, and Willow 360 allows investors to begin a liquidation process after one year
Best For: Accredited investors with substantial capital seeking commercial real estate exposure or multi-asset diversification through institutional channels.
Why mogul Stands Out for Long-Term Wealth Building
Institutional-Grade Selection Through Fractional Ownership
mogul's founding team brings Goldman Sachs real estate experience, and its properties are curated by former Goldman Sachs investment professionals and acquisitions experts using strategies previously deployed for high-net-worth and institutional capital. The platform's 12% minimum projected IRR hurdle and sub-1% property acceptance rate serve as stringent screening criteria. That rigor is delivered through fractional ownership, so investors gain exposure to a specific, underwritten single-family rental without acquiring an entire home, and licensed property managers handle routine operations while larger decisions generally go to investor voting. Property management is included rather than billed separately.
Strong Return Potential in the Category
mogul reports 18.8% average annual returns (IRR) across its portfolio, roughly four times the current top HYSA APY of 4.50%. For context, Fundrise reported approximately 6.39% for its Flagship Fund and 9.11% for its Income Fund over the 12 months through June 30, 2026. These are not like-for-like measurements: a platform-reported IRR, a trailing fund total return, and a variable FDIC-insured savings APY are fundamentally different metrics with different risk profiles. Over a 30-year hold, mogul's analysis of single-family rentals versus the S\&P 500 shows average returns 190% higher with 45% less volatility, and real estate has also historically served as an inflation hedge.
Monthly Income With Potential Tax Benefits
mogul provides property-specific LLC ownership in a single identified home rather than exposure to a blind pool. Investors receive K-1s and applicable tax forms, and depreciation and other tax items may pass through depending on the offering and the investor's individual tax circumstances. Other pass-through real-estate structures may also allocate depreciation, and tax treatment depends on the structure, the offering terms, and the investor's situation. Eligible depreciation deductions may offset certain taxable real-estate income, subject to applicable IRS limitations. Once a property is operational and generating distributable cash flow, mogul generally distributes an investor's proportionate share of net rental income monthly rather than quarterly, with amounts varying by actual property performance.
No Recurring AUM-Based Management Fee
mogul's upfront charge is a 5% capitalized deal fee, structured as a 3% platform fee plus a 2% property setup or rent-ready fee where applicable, along with a 2.5% ongoing fee on collected rent. mogul does not charge a recurring AUM-based management fee on invested principal. Fee structures vary substantially across the alternatives in this list: some platforms levy annual AUM or advisory fees, some use transaction fees, and certain debt products charge no investor fee at all. Where a platform does charge an annual fee on invested principal, that drag compounds across a multi-year hold.
Alignment Through Co-Investment
mogul personally invests in every property offered on the platform, aligning the team's financial interests directly with investor outcomes. This skin-in-the-game approach reinforces accountability to investor results.
Purpose-Built for Building Wealth Through Real Estate
For investors serious about long-term wealth creation, mogul offers a combination of institutional-quality underwriting, strong reported returns, property-level LLC ownership, and a fee model without recurring AUM charges. Explore available properties, use mogul's free rental property calculator to analyze potential returns for any U.S. address, or schedule a call with the team.
Disclaimer: The information provided in this guide is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult with a licensed professional before making any financial or investment decisions.
Frequently Asked Questions
What are the main advantages of fractional real estate over high-yield savings accounts?
Fractional real estate through platforms like mogul offers higher return potential. mogul reports 18.8% average annual returns (IRR) versus roughly 4% to 4.5% APY for leading savings accounts, though those are different measurements and real estate returns are not guaranteed. Beyond returns, investors may gain tax attributes such as depreciation passed through on a Schedule K-1, subject to individual tax circumstances, plus property appreciation exposure and potential monthly rental income. Real estate is a longer-horizon wealth builder, with mogul describing a 3-10 year hold and five to seven years as typical, compared with immediate access for savings accounts.
How does mogul select properties for its platform?
mogul's research team applies institutional-grade due diligence, with less than 1% of properties reviewed passing the selection process. Every property must meet a 12% minimum projected IRR hurdle, inclusive of one-time fees, before listing. The founding team's Goldman Sachs background brings $10 billion+ in investing experience to the underwriting process, and mogul co-invests in every property alongside its investors.
Can I lose money with these high-yield savings alternatives?
Most of the market-based and private-market alternatives in this guide involve asset and market risk, unlike FDIC-insured savings accounts. Real estate values can move with the market, rental income may fluctuate, and debt investments can default. I Bonds have a different risk profile: they are U.S.-government-backed nonmarketable savings bonds, although investors who redeem before five years forfeit the most recent three months of interest after the 12-month minimum holding period. mogul offers distinctive downside mitigation for new members, covering up to $10,000 in losses on first-week investments during their first year from its own balance sheet capital. Matching capital to your intended holding period remains a sound approach across every option in this list.
How do fees compare across fractional real estate platforms?
Fee structures vary substantially and are not directly comparable. mogul's upfront charge is a 5% capitalized deal fee, made up of 3% platform plus 2% setup or rent-ready where applicable, with a 2.5% ongoing fee on collected rent and no recurring AUM-based management fee on invested principal. Fundrise's real-estate funds involve approximately 0.85% management plus 0.15% advisory annually. Groundfloor's standard Notes charge no investor fees. Lofty uses 2.5% purchase and 3% sale transaction fees rather than an annual AUM fee. Willow fees vary by product. Annual fees charged on invested principal compound over long holds, while transaction fees are front-loaded and rent-based fees scale with income received.
What's the minimum time I should plan to hold these investments?
Holding periods vary widely. Treasury I Bonds have a 12-month lock-up with a three-month interest penalty before five years. Groundfloor Notes run 1, 3, and 12 months, with bridge loans typically 6-18 months. EquityMultiple's Alpine Notes run 3, 6, and 9 months. Fundrise's Flagship and Income Funds offer quarterly repurchase opportunities. Lofty has no minimum holding period, though execution depends on market demand. mogul describes a 3-10 year property hold, with five to seven years typical. Publicly traded dividend stocks and REITs offer daily market liquidity, but investors commonly use longer horizons because market prices can be volatile, and no particular holding period guarantees better performance. Match your investment selection to your actual time horizon before committing capital.