- An ordinary savings account is one way to keep your money safe while earning a small amount of interest. Savings accounts are available at virtually every bank, but the interest rate will vary between institutions. Shopping around is the best way to get the most for your money while keeping it safe. Be sure to check the minimum balance requirement for the savings account, especially if you only have a small amount of money to invest. Many savings accounts have no minimum balance requirements at all, so you should be able to find one that suits your needs.
- Money market accounts generally require a higher minimum deposit than ordinary savings accounts, but they also tend to pay a higher interest rate. If you have a significant sum of money to put aside, like several thousand dollars, a money market account can give you a good rate of return without compromising the safety of your investment.
- If you purchase a certificate of deposit from an FDIC-insured bank, your money is protected up to $250,000. The interest rates on CDs varies from bank to bank, so it pays to shop around for the best possible rate for the CD you need. The rates on long-term CDs are generally higher than those on short-term CDs, but the tradeoff is that you have to keep your money tied up for a longer period of time or risk an early withdrawal penalty.
- Treasury securities are backed by the full faith, credit and taxing power of the United States Treasury. That makes those securities a safe way to put money aside and let it grow. The interest rates on Treasury securities are generally lower than those on other investments, but you have the satisfaction of knowing your money will be there when you need it.
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