I have found that the rate at my bank is 1.71% which isn't all that hot. I want to know if Fidelity or Vanguard or someone else offers a higher rate. Or, if they are regulated, what is the rate? Thanks to all in advance.
2006-09-11 07:37:21 · 4 answers · asked by ? 2 in Business & Finance ➔ Investing
A Roth IRA is an Individual Retirement Account that provides tax-free growth. A Roth account can be opened through a stockbroker, mutual fund, or other provider of "normal" investment accounts. The rates vary depending on what the investments are in. 1.71% is low. The rates aren't regulated by the government but rather the market. You will need to do research as far as finding a better rate, also they fluctuate and you'll want to keep that in mind. You may want to look at how a Roth has been doing over several years because of this fact. The best person to do the research is YOU (since no one will care about your money like you.)
2006-09-11 07:51:55 · answer #1 · answered by Willow S 2 · 0⤊ 0⤋
Think of an IRA in the same terms as you think of a 401(k).
The Roth IRA is just an account that holds an investment....it is not an investment. The "earnings" will be determined by what you put into your Roth IRA.
Bank IRAs typically use things like guaranteed rate CDs for their IRAs. Investment firms typically use non-guaranteed investment products like mutual funds and such. Fidelity and Vanguard are very respectible investment firms.
2006-09-11 08:40:45 · answer #2 · answered by derek 4 · 0⤊ 0⤋
You need to take some time to understand what you are doing.
And IRA is a type of retirement account. A Roth is a type of IRA. You can make many different types of investments in your IRA. Not every institution offers a wide range of investments. Your banks sounds like one that does not.
I strongly suggest you pick up a copy of Investing for Dummies and either Personal Finance for Dummies or the Wall Street Journal Personal Finance Guidebook.
There is nothing wrong with where you are right now in terms of knowldege... unless you don't do anything about it! You are asking some of the right questions. Good luck!
2006-09-11 07:45:19 · answer #3 · answered by Y Answerer 6 · 0⤊ 0⤋
Rates vary depending on the funds you invest in. Good returns are not guaranteed and you can lose money. But you can do significantly better than 1.7%.
If you want a safe bet, try ING Direct savings account, currently at 4.40%.
2006-09-11 07:43:30 · answer #4 · answered by IT Pro 6 · 0⤊ 0⤋