Once you have earned some sizable dough, it is natural to question, what is the best possible thing you could do with it? Most of you may be saving for ‘that’ emergency situation and willing to let it sit in your piggy bank, however there are many things you can do with this saved up money.
These savings are your hard earned money, so of course there is much hesitation into putting them at high risk investments. Most put them at low risk investments, the idea is for the money to grow slowly with little to no associated risks. This is a good idea, and with the technology of net banking and more accessibility to savings account and other options it, there are various types of accounts you can set up so that you can make the most of your savings. Here are some them:
Can you remember the first time your parents took you to the bank to set up your personal savings account? If they did, it is number one lesson in saving money. These accounts are offered by banks and credit unions. They are insured by the Federal Deposit Insurance Corporation with specified limits. Interest rates on savings account are normally low but the net banking many times provides higher yielding savings accounts.
Money Market funds
A money market fund is a type of mutual fund that can be invested only in low risk securities. Therefore, money market funds are naturally considered to be the lowest risk type of funds. They characteristically provide a return that is similar to short term interest rates. They are not regulated by the Federal Deposit Insurance Corporation but by the Securities and Exchange Commission.
High Yield Bank accounts
High yield bank accounts are the one kind of savings account only with complete Federal Deposit Insurance Corporation protection. This gives them the power to generate higher interest rate, than your normal savings account. The reason for it earning more returns is because it requires larger deposit initially and the access to a high yield bank account is always limited.
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