i am trying to save money and i would like to have an account where i can place a certain amount of money in a month and have it gain interest without being able to take it out. is there anything like this or does anyone have any advice on how to save money through banking?
2006-10-03 12:48:15 · 6 answers · asked by kris 1 in Business & Finance ➔ Personal Finance
It all depends on how much money and the timeframe you are considering.
I advise you look into a company called Primerica Financial Servies; they will provide you a full free financial analysis to determine your specific needs.
2006-10-03 14:16:02 · answer #1 · answered by RIG 3 · 0⤊ 0⤋
This is not a loan.
The best way to do this is with a 401k because your employer might match it. You can't take it out until you retire - but you can borrow from it for certain big things - like education, buying a house, and big health care expenses.
If you don't want to tie up your money that long, or don't work for a company that offers a 401k, I would recommend a savings account. You should see if there is anyway you can get money transferred to the account through payroll deduction. Look for one that doesn't charge any fees, and is covered by FDIC insurance in case the bank goes under.
You can buy mutual funds, but I recommend you learn about those before investing in them, since you can lose your principal by investing in them.
After that, you can buy certificates of deposit that have certain fixed terms. If you stagger your maturities - like buy one that matures in March, one that matures in June, one that matures in September, and one in December, you will always be close to getting cash without having to incur penalties for withdrawing early.
To compare rates, go to bankrate.com.
Other good money advice is motleyfool.com who has free newsletters, and advice about investments like stock. It is never too early to start learning about them.
2006-10-03 19:57:21 · answer #2 · answered by Don't Know 3 · 0⤊ 0⤋
..i think that it's not the loan that you need because having a loan is having a debt... on your part you only want to invest your money, you want to earn profit from it am i right?..the only thing you'll do is that to have a time deposit-you will not take the money but surely it earns interest the longer the money deposited from the bank the higher profit you'll earn but of course take some consideration whether the bank has been operating for many years already like universal banks maybe...or if you want just open a savings account...
2006-10-04 06:23:06 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Look into CD's (certificates of deposits) These have various interest rates depending on the amount of cash you initially put into it and the amount of time before it can be withdrawn. These can continue to grow if you let the earned amounts roll over and go for another period of time. You can't withdraw them before the specified time unless you pay a penalty.
2006-10-03 21:29:21 · answer #4 · answered by Dale P 6 · 0⤊ 0⤋
alot of bank and credit unions. have a savings account called a cristmas account and you can add money all year but only withdrawl in november throught december so I am sure that if you talk to the banks that they could probably set up something that could help you
2006-10-03 19:53:43 · answer #5 · answered by weldergooroo 2 · 0⤊ 0⤋
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2006-10-04 08:06:22 · answer #6 · answered by stock_trade_expert 3 · 0⤊ 0⤋