A Job for Your Money

I was just on forum, it's not called a forum, but that's basically what it is. I was delving out advise on things I know about like I normally do. The question posed was about where one should put their money, stocks weren't mentioned, so it was easy for me to answer. And it occured to me that my answer was something I haven't covered here.

I don't really know much about stocks, so I'll leave that up to the experts or those who do know. But I do know about savings accounts and the like. First, I'll cover everything else here. I don't do bonds, yes the interest rate is more, they're usually the safest way, but by the time they've matured, I'm not sure it would be worth it. Keep in mind that the cost of living goes up every year, and the dollar depriciates in value along with it.

I've yet to open a CD, but as far as I know, you're stuck with the original amount, so I suppose you'll know exactly how much you'll get before you get it. I won't claim to be non objective in this area, but who can be all the time? My savings spot of choice are MMA's aka Money Market Accounts. True, with most, you have to open these accounts with 5K, and in most cases, the opening amount is also the minimum balance to avoid fees. Some have an introductory rate of maybe .00325 per month for the first three months, then goes down to .001 in the fourth month. But there are lots of upsides.

You can add as much as you want, and earn interest on every single cent from the day you deposit it. You can watch it grow each month even if you don't have constant access to a computer. And in many cases, the rate rises at certain amounts, for example, 10K, 20K and so on. The rate might not look so hot, but when you multiply 5k times .00325, you get $16.25. Which, no matter what, is more than what you had to begin with.

Then imagine if you won the lottery for let's say, 5 mil, and started out at that rate. That would be $16,250 per month minimum! The little cents do indeed count.


Best Savings...