I've been thinking about short term CD's and savings accounts with interest rates, but I just don't know what to do. the job is not permanent, so i dont want to put a bunch of money into something and not be able to get it either.
2006-06-13 04:43:15 · 6 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
you can open an online savings account with an interest rate of 4.75 with citibank, or 4.65 with hsbc or emigrantdirect, it's a little lower than one year cds but you can get your money right away without penalty
have enough money in this account (about 3 months worth of expenses in case you lost your job) and the rest in cds
2006-06-13 04:50:07 · answer #1 · answered by jean 4 · 0⤊ 1⤋
Short term CDs are OK. Online savings accounts as recommended by others are OK too. But, I think the best choice is simply a money market fund from one of the leading mutual fund companies, Vanguard. They are associated with the lowest operating costs (about 0.20%). That means they pass on directly to you the rates you could earn if you were an institutional investors investing in a bunch of short term instruments including, commercial paper, banker's acceptances, wholesale CDs from banks, etc...
Short term CDs and high rate online savings accounts rates will sometimes be higher than a Vanguard money market fund. But, they are in essence teaser rates. There is nothing reliable or sustainable about their high rates. At renewal or after 6 months (whatever comes first) such high rates are most likely to drop precipitously.
On the other hand, a Vanguard money market fund does not play teaser rate game with you. It plainly pays you whatever the market yield is for such short term money market instruments (commercial paper, etc...).
Shares of such money market funds always trade at $1.00. So, your risk of capital loss is close to nill. Your money is very liquid. You can write checks on such balances for amounts greater than $250. You can close out your account any time you want. So, these money market funds provide you liquidity, safety of principal, and attractive reliable yield or return vs any of the other options mentioned by other answers.
Hope this information was helpful.
2006-06-13 05:03:00 · answer #2 · answered by Gaetan 3 · 0⤊ 0⤋
Get a high interest checking account, like at Emmigrant Direct or Capital One. Their interest rates are pretty close to the same as a CD, with no penalties for early withdrawal. I believe that the savings account at Capital One is either 4.25 or 4.5% right now, which isnt too bad at all.
2006-06-13 04:47:10 · answer #3 · answered by bmwdriver11 7 · 0⤊ 0⤋
Most advisors will talk about 2 things; diveristy & a long term investment. You can put some into a CD, but also look @ mutial funds.
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2006-06-16 14:14:50 · answer #5 · answered by BESTANSWER 1 · 0⤊ 0⤋
you can gamble on a sure bet.
go to a sports betting website and find a team that you know cannot lose... like the marlins... then bet everything on them to win. you can also bet against them.
2006-06-13 04:46:43 · answer #6 · answered by dacrunklobsta 2 · 0⤊ 0⤋