CD's, Money Market Deposit Accounts, Mutual Funds and Savings Bonds

Saving your money is great. Investing it is even better but it can seem confusing. Aside from a savngs accounts where can you feel hat your money is really safe? Are you a " good saver" who shies away from any kind of investing because you do not know alot about safe investmnets? The following choices are places where you can grow your money safely..without fear of losing it.

CD's, or certificates of deposit are currently offering rates as high as 4.62 percent. You can increase your savings by this much if you do not need ready access to your cash. Money is placed in a CD fror a set amount of time and there is a penalty for early withdrawal. Do not choose a CD if you think you might need to access your cash for any reason. The best thing about CD's is that they are FDIC insured and offer a relatively high return.

Money Market Deposit accounts or MMDA s are a better choice if you need acess to your money. They are also a good choice if you want to begin an investing accountant that you would like to add to over time. They allow free acess to your money and you can opt to make deposits as you go. The avergae current return is about 2.07. If you are keeping your money in a standard checking account, this is an option to consider. You will have virtually the same services you have now, but at a higher return. Some institutions do require a certain balance to open this type of account. Others limit the number of transactons a month. A good option to consider might be to put a certain amount of your savings in to this type account, while keeping some money in a regular checking account.