Put Your Cash Assets in Safer Accounts
Money market accounts and certificates of deposit balance safety and return
When it comes to your cash assets, the last thing you want to worry about is risk. Bank products, such as money market accounts and certificates of deposit, currently strike the best balance between safety and return, says Greg McBride of Bankrate.com. Both types of accounts are covered by the Federal Deposit Insurance Corp., which guarantees up to $250,000 per person, per institution.
Today, the top-yielding bank money market accounts are paying 3.2 percent and higher (meanwhile, the top-yielding money market mutual fund yields 2.6 percent). With CDs, you trade access to the money for a fixed interest rate over a set period of time. Shop around for the best yields and you can get 4 percent or more on everything from one- to five-year CDs. Just be willing to lock up your cash.
Reader Comments
Gold
I am with Jim Corbin on this one....Gold was at 600 last summer,,,,I also agree that gold will only continue to increase, as the dollar becomes weaker. I would also say that in the equity side, I would be looking strongly at Apple Inc. I believe it will continue to gain momentum as new products will continually to out glitter all others in the market. A strong bet!
Best interest rate this year.
Goid is up about 11% this year. I believe it may gain 3%-5% more by year end.
The more money Obama prints the better it gets.
He and his congress can make gold illegal, but I don't think they can devalue it
like they have the US$.
CDs and Money Markets Limited Guarantee
If CD's and Money Markets are guaranteed only until the end of this year, what do non-savvy investors like myself do with the money? It sounds somewhat precarious to leave it in these accounts which is where I put all of my retirement investments. So, what's the alternative, if any? Sounds like mattress-stuffing isn't so far-fetched, after all. Or, at least a fire-proof safe. Any ideas?
advertisement
