If you have reached a certain point in your career, you may have a little bit of extra money set aside. While you know that storing your savings in the freezer is not the best idea, you may not be too sure where you should keep it to get the biggest bang for your buck.
Learn: 3 Easy Tips To Turn Your Credit Woes Into Wows
Discover: Surprising Things You Can Buy With Food Stamps
We reached out to financial experts nationwide to find out the safest (and smartest) places to keep your savings. We came up with four tried and true methods for protecting your money and maybe even watching it grow.
High-Yield Savings Account
Across the board, most of our experts agreed that a high-yield savings account is one of the best ways to keep your money safe.
Garit Boothe, the owner of Digital Honey, said, “These accounts offer higher interest rates than traditional savings accounts and are FDIC-insured, which means that the government will protect your money up to $250,000 in case the bank fails.”
Ian Wright, managing director at businessfinancing.co.uk, agreed: “High-yield savings accounts offer a variety of benefits, including higher interest rates than regular savings accounts, low fees, FDIC insurance for up to $250,000 in deposits, and convenient access to your funds through online banking or mobile applications.”
“Additionally,” he said, “many high-yield savings accounts offer bonus interest rates on deposits that stay in the account for a certain length of time. This encourages you to save, and your money can still grow even when it isn’t actively being used.”
Certificate of Deposit (CD)
“CDs are offered by banks and credit unions, and they require you to deposit money for a set period of time — e.g., six months, one year — in exchange for a higher interest rate,” Boothe said. “CDs are FDIC-insured, but you generally can’t withdraw the money until the term is up.”
“With a CD, you deposit your money in the account for a fixed term, usually a few months to a few years,” Kevin Baxter, a financial advisor with MoneyToday, said. “In exchange, you typically receive a higher interest rate than you would with a savings account. However, you may have to pay the penalty to access your money before the CD matures.”
Money Market Account
“Money market accounts are a type of savings account that offers a higher interest rate than traditional savings accounts and can be a good option for keeping your savings safe,” said Andrew Lokenauth, a personal finance expert. “They often have higher minimum balance requirements than other savings accounts, and they may also have limited check-writing capabilities. Money market accounts are FDIC-insured up to $250,000.”
“Money market accounts are more flexible than the average traditional savings account,” said Gabriel Lalonde, president of MDL Financial Group. “They offer a higher interest rate than traditional savings accounts, and they work essentially as a hybrid deposit account with check-writing and debit card privileges. They are FDIC-insured, meaning that the government backs your money.”
“U.S. Treasury securities, such as Treasury bills, notes and bonds, are considered to be among the safest investments because they are backed by the full faith and credit of the U.S. government,” Boothe said.
Lokenauth added, “They are considered to be a very safe investment, as they are backed by the full faith and credit of the U.S. government. However, they do not offer a high rate of return, as they are meant to be a low-risk investment.”
More From GOBankingRates
Zelle Scams on Facebook Marketplace: How To Recognize and Avoid Them
Take a Look Back: 2022 Year in Review
The 10 Best Cash Back Credit Cards for 2023
7 Ways To Know You’re Ready To Start Investing
This article originally appeared on GOBankingRates.com: Experts: 4 Safest Places To Keep Your Savings
Source: Read Full Article