What is deposit alternatives?

Deposit alternatives are financial products that serve as substitutes for traditional cash deposits in bank accounts. These alternatives can include options like money market accounts, certificates of deposit (CDs), and peer-to-peer lending platforms, which may offer higher interest rates or different liquidity features. They aim to provide individuals and businesses with options for earning returns on their funds while managing risk and access. Deposit alternatives can be particularly appealing in a low-interest-rate environment.