Safe Investment Alternatives to Savings Accounts

MoneyTips

Regardless of the amount of money you have, it's important to keep a portion of it in liquid assets that are readily accessible to pay bills and other debts. The simplest and most common way to maintain liquidity is through cash kept in a savings or checking account through a bank or credit union. However, interest rates are often poor, providing just a slightly better return than stuffing your money in your couch cushions. (You can't count the change you find in your couch cushions as interest.)

Are there alternatives that can maintain general liquidity while providing a little better interest rate? Indeed, there are. Here are some examples.

• Certificates of Deposit – Traditional Certificates of Deposit (CDs) are savings certificates with a fixed term and fixed interest rate issued by banks, savings & loans (S&Ls), and federal credit unions. At the end...