I have about 40k that I would like to do something with. I want somthing low to no risk. Where is the best place to put my to earn interest? I dont really know a lot about investing so any advice would be appreciated.
Which is better a CD, , or high interest savings??

 

  • jimbad05 9:07 am on March 18, 2010 Permalink

    Basically; money markets, CDs or Bonds are your safest options.

    Another poster mentioned bankrate.com. That is a good website to look at the different interest rates banks are offering. Specifically, you should look at the rate on money market accounts. Basically, you transfer cash out of a checking account and into the money market. If you need to take it out again, it only takes about 2-3 days to transfer back into checking. A money market is very safe, and many are FDIC insured. They earn a lot more interest than a checking or savings account would.

    The way a money market makes money is they lend out your cash to businesses for short term loans.

    Another option is CDs, or Certificates of Deposit. These would give higher interest than a money market, but lock up your money for a set period of time. For example, you might find a $1,000 1 year, 3% CD. Many of these are FDIC insured as well.

    Bonda are something to look at too. Savings bonds can be purchased at any local bank. They’re like CDs but are meant to be held for a longer term. When you buy savings bonds, you’re giving money to the federal government. Your money then will earn interest according to the terms of the bond (There are series I and series EE that follow different earning schemes). They aren’t FDIC insured, but are backed by the full faith and credit of the U.S. Government.

    Personally, I would go for a money market right now. Interest rates are pretty terrible all around. I wouldn’t want to lock up cash, at a low rate, in a CD or bond right now.

  • Jordan 9:07 am on March 18, 2010 Permalink

    GOLD. the only true currency that CANT be devalued. you cant create more of it. this is a great long term investment

  • Jamie 9:07 am on March 18, 2010 Permalink

    Low to no risk? Go to your bank and enquire about an ICEA or a guaranteed reserve savings account.

  • gosh137 9:07 am on March 18, 2010 Permalink

    For the USA, look up CDs at http://www.bankrate.com. Get one from an FDIC insured bank.

  • Brandon S 9:07 am on March 18, 2010 Permalink

    I like online savings accounts like the one from HSBC Direct for no risk. These give better returns than money markets and better returns than most CDs at your local bank. It has a initial deposit and no minumum balance.

  • nidal 11:44 am on March 19, 2010 Permalink

    send it to me