To have money set aside for your retirement you need to carefully invest your money. Most people have a checking account and a savings account but not everyone will focus on saving money or shopping around for the best rates to try and earn more money. If your employer provides a retirement account, it is a wise idea to invest in it as some will do matching contributions up to 3% in most industries. There are several different options that you can use in order to set aside money for your short-term or long-term investment needs. Here are a few options to consider:
All of these accounts will most likely pay higher interest rates than what you can get from your traditional financial institution. It is a wise idea to compare rates in order to find which account will offer you the top interest rates and give you a greater chance to earn more money.
Chapter 1. What does best return mean to you?
In order to find the top interest rates you need to determine what your savings goals are. What does “best return” mean to you? Do you want to opt for a risky or safe investment in order to earn the highest amount of money possible? How long do you want to lock your money away? With CD accounts you generally set the money aside for a longer time period with limited access to it compared to money market accounts and savings accounts.
Chapter 2. How much money can you invest?
To get the best return on your money you need to focus on investing more money. Invest as much money as you can afford in order to get a higher return. Account owners that invest over $10,000 with Capital One will get a $50 bonus (offer may end 8/31/2011) with the potential to earn a higher savings account rate based on the monthly balance amount. While most people don’t have $10,000 to invest up front, most of the online money market accounts and savings accounts do not ask for an initial deposit and will still offer other incentives like referral bonuses.
Chapter 3. Diversify your investments
To get the best return on your money it is a good idea to invest your money into different accounts. You need to diversify by having money in savings accounts, money market accounts, CD accounts, and of course an IRA or 401(k). When you diversify you have a greater chance to earn more money and you have more protection against inflation along with bank failures. Always invest money with FDIC insured banks in order to have your money protected in the event of a bank failure.
Chapter 4. Do your research
Don’t be afraid to move your money around to different savings accounts and money market accounts based on the top interest rates. The difference can mean $50 or even hundreds of dollars a year in interest money. Always keep track of the best rates and check the terms and conditions of your accounts to see if you can transfer the money without fees.