What is the least risky, highest interest, easily accessible, way to invest 3,000.00 ?

Question

I have been researching money market accounts and i bonds to invest my savings into, and continue to add 200.00 every month. Would either of those ways be the best, or is there something better I have not found yet? Thanks for your help.

Answer 1

For easily accessible and least risky, you probably would want to go with either CDs or money markets.

Say CD's, you could pick three different $1,000 1-month CD's that come due on the 1st, the 10th, and the 20th of the month--that way you will always have at least $1,000 coming due every 10 days in case of an emergency and need to get at it.

Another option is to lump the whole thing into one CD for a 3 or 5 year period, but make arrangements with the bank FIRST that if you need to get to it they can establish a line of credit for you based on that CD--that way you won't actually "touch" the CD money but instead borrow the money on a short-term loan. You've got the $200 everery month to begin paying it back should that situation arise and you could pay it off quickly.

For ease of accessability, I would avoid an IRA-qualified account. However, if you have a 401(k) or other retirement program at work that allows borrowing against, you might want to just do that. The tax favorability would give you a greater return and the borrowing feature, if available, would give you the liquidity you need.

Answer 2

In general, the lower the risk, the slimmer your returns will be. Historically, though, utility stocks have been a good way to go.

Utilities (electrical, gas) that supply our power are regulated by the government, and so are the profits they make. Thus, they're guaranteed to make a profit, are therefore stable and always able to yield both dividends and modest growth at the same time. Taken together, their dividends and growth often outperform most other stocks ...

You might survey a collection of utility stocks or of utility stock mutual funds and see how they're doing. You can trade them like stocks and sell whenever you wish. If you're saving for the downpayment on a house you can also designate this investment as your IRA (individual retirement account) and still use it for that purpose, thus sheltering it from taxes when you cash-out.

Pretty neat, huh? :)

Answer 3

Three month treasury bills are considered a good approximation to an ideal "risk free" investment. There is no realistic chance that the U.S. government will default on the payments. Equally important, you are locking in your investment for only a short period of time, so the purchasing power of the t-bill won't be devastated by a period of high inflation. "Though a truly risk-free asset exists only in theory, in practice most professionals and academics use short-dated government bonds of the currency in question. For USD investments, usually US Treasury bills are used"

Answer 4

Bank CD... you can easily get 5% on a 12 month CD. If you need to withdrawl before then, there would be a penalty, but you would atleast get back what you put in. Look into credit unions, they usually have better rates. Good luck.

Answer 5

have u looked into certificate of deposits. or a savings account. or try buying stocks for a company that is likely to sky-rocket in the near future. or put it in a roth-ira.

Answer 6

Bank money market deposit account.

Answer 7

Roth IRA

Answer 8

give it to me!!! kiding becareful because it is safe in the bank

Answer 9

CERTIFICATE OF DEPOSIT