Not exact matches
You may also want to purchase
certificates of deposit and
think of laddering them as a way
of optimizing your interest returns in a cash based asset class.
Whether it's a signing bonus from starting that new job, or an unexpected windfall, a
certificate of deposit is an easy way to grow your savings without having to
think about it.
When it comes to earning money with your money, most people
think of a savings account,
certificate of deposit (CD) or investment vehicle.
You probably
think of it as buying a
certificate of deposit (or Treasury bill, bond, or fixed annuity), but actually, you're making a loan.
Cash is cash, while cash alternatives are short - term investments that you can easily turn into cash —
think money market funds and
certificates of deposit.
Think of money market accounts as a happy medium between savings accounts and
certificates of deposit (CDs).
If the
thought of losing money or having to recover after a market crash leaves you feeling queasy, you might be better off playing it safe with bonds or
certificates of deposit instead.