There are many ways that people can make money with their savings. The easiest way is to leave the money in a bank savings account, although it will earn a tiny amount. A way to earn slightly more while keeping your savings safely in the bank is getting certificates of deposit. At the end of the day, best fixed term savings accounts will help you on your way to financial freedom.
Commonly called CD’s, certificates of deposit can be divided according to maturity date. This means that someone must agree to keep the money sitting in the bank for a specified amount of time. This could be anywhere from three months to five years. The farther into the future the maturity date, the more the CD will earn. If someone must take the money out before the maturity date is reached, they will have to pay a penalty. The easiest way to do this is start a CD every month that matures after three months. After the third month, the first CD has matured and all others will each mature every month for a year. For a myriad of savings accounts, you should consider Birmingham Midshires Savings.
Savings Bonds are issued online by the United States Government. These are divided into Series I and Series EE Savings Bonds. They can be bought in different amounts and with different maturity dates. Buyers pay a penalty if the bonds are redeemed early. There are tax advantages with US Savings Bonds, and they can be given to someone else as a gift.
For savers that want to earn more on their savings and don’t mind taking a risk, buying stocks can be quite profitable. There is no guarantee of making any money and it is possible to lose money, but savers who get to know the stock market can make a lot of money buying stock in a company that is poised for growth.
A favorite way of keeping stock market losses in check is by investing in a mutual fund. Mutual funds invest in a group of companies, so if stock in one company loses value there are others that stay steady or grow in value. An easy way to start investing in mutual funds is by allocating a set amount each month. Some mutual funds specialize in companies within a single industry, such as mining or aerospace.