A CD savings account is an excellent idea. Talk to your bank or investment representative to help you find a good percentage interest rate that will help your money grow while it's in storage, and make sure it's FDIC insured!
The risk of a money market mutual fund is similar to that of a savings account. Both are low-risk, slow-growth savings vehicles. Money market funds are viewed as a cash equivalent, similar to a savings account.
Out of the three options, a mutual fund has the most amount of risk involved. While a savings account and checking account typically have very low risk, mutual funds are subject to market fluctuations and can experience losses. The level of risk in a mutual fund depends on the types of assets it holds, such as stocks or bonds.
As low an interest as the borrower can get away with and still attract investment.
Yes, you can invest personal finance savings with low risk in a variety of fixed income and savings products. These products include Certificates of Deposit (CDs), Savings Accounts, Money Market Accounts (MMAs), US government bonds and investment grade corporate bonds among others.
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In a regular savings account, the funds are always available for withdrawl. As a result, savings accounts generally have a low rate of interest. A certificate of deposit is an investment for a specific amount of time. The funds are not available until the certificate has matured, therefore, it has a slightly higher rate of interest than a savings account.
When you put money in a savings account, you can draw it out at any time. In a certificate of deposit, you agree to leave it in the bank for a certain period of time. They pay slightly higher interest because they know that money will be there for 3 months, 6 months, 1 year, etc. If you draw it out early, they reduce your interest.
Bank Deposits
They are very low risk savings products.
Ordinary savings are only simplified savings with a base low interest paid on set volume table of value for money invested and a schedule time that interest is paid. This interest if generates revenue is fully taxable. It maybe set for landmark time or a continuous exercising occur in interest earnings. The investment is usually very low risk and may or may not be backed by FDIC insurance pending the provider. In most case investment withdraw may not be restricted at any time or the time frame permit to withdraw reasonable and low penalty or risk. The risk of decline is seldom. Unlike various specialized savings investments that may have other incentives like non taxable upon interest earnings or other investment incentives with higher returns yet a greater risk and this risk may also follow suite with other factors such as following other investments such as index funds or Stock Market trading. Which the rate of return constantly fluctuates either high or low - the ability to withdraw may enforce penalties or restrictions also providing risk of not able to recover or salvage investments if losses or declines happen.
low risk, low returnsmedium risk, medium returnshigh risk, high returnslow risk, high returnsthe answer is LOW RISK, High RETURNS
balanced fund