Short Term Savings Products

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

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

Savings : When you first get wet your feet in investing, you should consider this, as it is the most popular banking product people use . The interest of a traditional savings range from 2.0% to 4.0 . This is better than keeping them at home. Investing in a savings account is relatively risk free, since these products are protected by the Federal Deposit Insurance . In general , the government's money you have on deposit to a maximum of $ 100,000 . Protects Some questions you need to ask : What is the interest rate on your savings ? Can change the rate after you open the account? Bank Will you pay a fixed monthly fee ? What if the balance drops ? Is the ATM service for free ? The fees reduced or waived if you 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 value of $ 1 at all times. It is a better product for investing in the traditional savings account , with respect to interest rates will give it to you . But has a lower rate than savings bonds . However , the virtue of investing in the money market fund is that while interest rates may be lower, you can take suits you your money.

Certificate of deposit ( CD ) : When you purchase a certificate of deposit , you are lending the bank use your money for a specified amount of time . In investing your money , you are assured of the annual interest payments . Investing in CD is relatively low risk , as it is FDIC insured up to $ 100,000 . If you invest $ 200,000.00 buy two CDs . Before going to invest your money , look for the best bank interest rates . Consider the fact that by purchasing CDs, you invest funds that will remain locked up for a certain period of time . Can you afford these funds locked up ? For if you take the money before it matures , you will pay . Steep fines If you are conservative about investing , this is a good place to start .

Financial experts recommend investing your money in the 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 .