Where to find higher yields

Rental homes

Buying a house or condo to rent out takes work and perseverance, but becoming a landlord can provide a nice return over the long run.

Ideally you'd pay cash for the property, but many lenders will finance up to 70% of the value of a rental.

You'll want a property that can generate a positive cash flow. Brandon Turner, senior editor of BiggerPockets.com, says expect to spend 50% of your rental income on the mortgage, insurance, maintenance and other expenses.

The "2% rule" says the property should fetch a monthly rent of 2% of its purchase price. But in many markets even less than 1% can produce a decent return.

Rental property should be seen as a very long-term investment — think 20 years or more. Over time, you'll be able to boost rents and benefit from some price appreciation on the property.

If you're willing to take the risk and put in the time, $30,000 could provide a better yield as a down payment on a rental property than it would in a CD.

Check out our 7 smart moves for getting started as a landlord for more advice.