[creato]

Is there a lower risk, lower interest option with the same capabilities (ability to use the money to pay others)?

Genuine question, I have no idea, but I didn't choose my bank based on interest rate. I can't pay bills or transfer money if it's cash under the mattress.

[mordechai9000]

In the US, depositors are insured by the FDIC (Federal Depositors Insurance Fund) up to $250000 per institution. This doesn't apply to investment accounts, but would cover standard checking and savings accounts, even if they pay interest. The interest on those accounts is usually negligible at most banks, anyway - not even close to offsetting inflation.

Edited to add: not my area of expertise, but I did research it a couple years ago when I was acting as executor for the estate of a deceased person. So take what you will from that. I do notice banks usually have a sign up saying they are FDIC insured. I think it's required, but I don't know for sure. I suppose a shady investment firm could try to suggest they are an insured bank without actually saying so.

[1899-12-30]

There is, it's called a narrow bank and it would probably pay more interest than normal banks. Unfortunately they have been mostly outlawed thanks to lobbying by the banking industry(see also the current lawsuits about usd stablecoins paying yield).