Additional Coverage:
- 10 Smarter Places To Stash Your Cash Instead of the Bank (financebuzz.com)
Local News – Diversify Your Savings: Explore Alternatives to Traditional Bank Accounts
Tired of low returns on your savings? Your checking and savings accounts aren’t your only options. Plenty of alternatives can offer better returns and more flexibility.
Money market mutual funds (MMMFs) invest in secure, fixed-income securities, offering potentially higher returns than savings accounts. Money market accounts combine features of checking and savings, providing higher interest rates and check-writing access.
For secure investments, consider U.S. Treasury securities.
Treasury notes (T-notes) mature in 2 to 10 years, while Treasury bonds (T-bonds) offer longer terms of 20 to 30 years, typically with the highest interest rates among government securities. Treasury bills (T-bills) are short-term options maturing in a year or less.
FDIC-insured sweep accounts automatically move funds above a certain threshold into higher-interest accounts. This can be a good cash management tool for both businesses and individuals.
Corporate bonds issued by companies with good credit ratings can offer higher yields than government securities, though they carry slightly more risk. Short-term bond funds invest in bonds nearing maturity, aiming for higher returns than money market funds with relatively low risk.
Certificates of deposit (CDs) offer fixed interest rates for set periods, providing higher returns if you can leave your money untouched. Stocks, while riskier, offer long-term growth potential, especially through diversified portfolios or index funds.
Many options exist beyond basic bank accounts to boost your savings and manage risk. Regularly assessing your finances and diversifying your investments can help you achieve your financial goals, including a comfortable retirement.
Boost Your Finances: Tips for Everyone
Regardless of your current financial situation, there are always ways to improve. Prioritize paying off debt – explore balance transfer cards or debt counseling. Supplement your income with a part-time job or side hustle.
Cut expenses by targeting your largest bills. Shop around for better auto insurance rates or find a travel credit card that suits your needs. Every step you take can bring you closer to financial security.
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- 10 Smarter Places To Stash Your Cash Instead of the Bank (financebuzz.com)