Alternatives to Savings Accounts

It’s important that you save as much money as possible in these current economic times of trouble. Every day there’s more bad news – unemployment rising, companies declaring bankruptcy, trade grinding to a halt. No one should take their jobs for granted, so it makes sense to stockpile as much cash as possible in case, heaven forbid, you should lose your job too and be stuck with the usual raft of bills and responsibilities, but no revenue to deal with them. Traditionally people have put their extra money into savings accounts, and while there’s a lot to be said for them, there are indeed alternatives to savings accounts that can make you more money. A lot more money. If you’re interested in alternatives to savings accounts, read on for some more tips, ideas and suggestions.

Savings accounts are great places to “store” money so that you don’t spend it. In addition, the best savings accounts will offer you competitive interest rates. However, there are alternatives to savings accounts that serve the same purpose, give you the same access to your money, and could make you more money than a savings account. You could put your money into a certificate of deposit (CD), for example. CD’s are great ways to save money and make money at the same time. With a CD, the more money you put into it the higher your interest rate will be. You can also rest easy knowing your money is insured by the FDIC, up to $250,000. You could also put your money into a money market fund (which is not protected by the FDIC) or a money market deposit account (which is). These alternatives to savings accounts could make you more money than a traditional savings account.

To learn more about alternatives to savings accounts, be sure to consult with your financial advisor or a trusted bank representative.