Short Term Savings Products

When you invest, it simply means that you are putting your funds in products, in this case short-term savings vehicles, which will allow you to reap high financial rewards.

Here is a list of the more common short term savings products you should consider investing in.

Savings account: If you are getting your feet wet for the first time in investing, you should consider this, as it is the most popular banking product people use. The interest rates of a traditional savings account vary between 2.0% to 4.0. This is better than keeping them at home. Investing in a savings account is relatively risk free, as these products are protected by the federal deposit insurance. Generally, the government protects the money you have on deposit to a limit of $100,000. Some questions you'll need to ask: What is the interest rate on your savings? Can the bank change the rate after you've opened the account? Will you pay a flat monthly fee? What if the balance drops? Is the ATM service free? Are the fees reduced or waived if you directly deposit your paycheck or government payments?

Money market funds: Money market funds are a specialized type of mutual fund that invests in extremely short-term bonds. Its shares are designed to be worth $1 at all times. It's a better product for investing in than the traditional savings account, with regards to the interest rate it will give you. But has a lower rate than certificates of deposit. However, the virtue of investing in the money market fund is that, while the interest rates may be lower, you can withdraw your funds when you see fit.

Certificate of deposit (CD): When you purchase a certificate of deposit, you are lending the bank use of your money, for a specific amount of time. In investing your funds, you're guaranteed annual interest payments. Investing in CD is relatively low risk, for it is FDIC insured for up to $100,000. If you are investing $200,000.00 buy two CDs. Before investing your money, shop around for the best bank interest rates. Consider the fact that by purchasing CDs, you are investing funds that will stay locked up for a specific period of time. Can you afford to have these funds locked up? For if you withdraw the funds before this matures, you'll pay steep penalties. If you are conservative about investing, this is a good place to start.

Financial experts recommend investing your funds into these short term savings vehicles, if you are looking to earn some interest in minimal risk products.

Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, consolidation and financial planning advice that you can research in your pajamas on his website.

---

Find a Methodology and Minimize Investment Madness

There are many reasons to be investing these days, and... Read More

Annuity Investment - The Whole Truth

Do you ever feel like you haven't been told the... Read More

How to Use Annual Report

There are many steps in calculating the fair value of... Read More

Moving Average Convergence Divergence ( MACD ) Charts

The Moving Average Convergence Divergence charts, or MACD charts for... Read More

Better Investing Made Easy

If there were one piece of advice that an investor... Read More

To Retire Rich, Save and Invest Early

If you want to retire rich, start saving investing early.... Read More

Creating Momentum with Options - Pro and Cons of At-the-money, In-the-money, and Out-of-the-money

To create momentum in your options trading you need to... Read More

Five Sure Fire Way to Secure Your Financial Future

"You can be poor when you're young, but you can't... Read More

Building The Foundation For Wealth

You wouldn't build your home on anything less than a... Read More

Investing Offshore for Retirement

As an expatriate you are in a privileged savings and... Read More

5 Day Trading Tips for Success

1. How to Treat Gap Openings A gap up or... Read More

Looking For a Safe Investment? Try a Certificate of Deposit

If you are looking for a safe investment and you... Read More

Retirement ? Its Sooner Than You Think!! (Honestly)

Many people hear "retirement" and think- what? 401K? Roth vs.... Read More

Planning for Retirement

Almost without exception, people don't start planning for their retirement... Read More

Investor Guide to Financial Health

Step 1: Spend less than you earnPerhaps the simplest financial... Read More

When NOT to Invest

Unfortunately, many investors who are seduced by the lure of... Read More

Trading Tips No 7: Developing a Casino Mentality for the Day Trader

I submit that the successful day trader would profit well... Read More

Retirement Plan Considerations Cheat Sheet for Small Business

RETIREMENT PLAN CONSIDERATIONS are something every small business person needs... Read More

Short Term Savings Products

When you invest, it simply means that you are putting... Read More

Buying a Home - Your BIGGEST Investment

This column has often focused on intangible investments like stocks... Read More

Sitcom Investing

A fickle stock market encourages good-humored mockery.Recently, as I watched... Read More

Creating a Financial Future - Putting Your Plan Into Action Part 1

This column has previously discussed "picturing the future that we... Read More

Evaluating A Money Manager

Scams and frauds are designed to take your money through... Read More

Will a Falling Dollar Derail Your Plans for Retirement?

How much are you willing to pay for a tank... Read More

High Volatility Investments

Penny stocks and options are high volatility investments that attract... Read More

Planning Starts with the Basics

When developing a plan for your finances, the toughest question... Read More

Short Selling for Investors

Shorts. Let's see. If there are shorts there must be... Read More

Begging Your Trust in Africa

The syntax is tortured, the grammar mutilated, but the message... Read More

The Realities Of Market Timing

Market timing systems are based on patterns of activity in... Read More

Retirement or Financial Freedom?

In the past most people never retired. They died. The... Read More

Quit and Retire Three Years Earlier!

For most people, there is a direct correlation between how... Read More

The Switzerland of Asia Shines

In many respects, Singapore is the Switzerland of Asia.Begun in... Read More

Making Your Investment Dollars Work for You

Investments are scary for some people, especially those who have... Read More