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 Most financial experts agree that it is important to have at least a portion of your investment holdings in savings. The following are some of the many savings alternatives that are available to help you accumulate your savings at a favorable rate of return. • Certificates of Deposit: In effect, certificates of deposit can be seen as short-term loans to a savings and loan, bank or credit union. CDs offer a moderate rate of return with a high degree of safety since they are insured by the FDIC (up to $100,000 per depositor). • I Bonds: I bonds are linked to an inflation index, which guarantees them a fixed rate above the inflation rate. A cross between EE bonds and Treasury Inflation Indexed bonds, I bonds offer guaranteed protection against inflation. • Series EE Savings Bonds: Usually referred to as U.S. savings bonds, taxes on the accumulated interest on these bonds is deferred until maturity. If the proceeds are used to pay for college, the taxes on accumulated earnings may be eliminated completely. • Interest-Bearing Checking Accounts: Offered by banks, savings and loans and credit unions, these accounts offer check-writing convenience while earning interest like a savings account. In some cases a minimum balance is required to avoid a fee. Disclaimer: All bank products are FDIC insured up to $100,000 per separate customer. |
Investment Opportunities & Options • Investment Portfolio Diversification • Stock & Bond Alternatives • Mutual Funds • Mutual Funds vs. Stocks • Traditional IRAs and Roth IRAs Banking Opportunities & Other Savings Alternatives • Savings Alternatives |
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