New Visitors Privacy Policy Sponsorship Contact Us Media
Baby Boomers Family Green Home and Auto In Critical Condition Just Starting Out Lifestyle Money
- advertisement -
News & Advice Compare Rates Calculators
Rate Alerts  |  Glossary  |  Help
Mortgage Home
Auto CDs &
Retirement Checking &
Taxes Personal

Savings Guide 2006

Savvy savers

  There's more to saving than stuffing your extra cash in a mattress.
Savings: The next big thing
Money market accounts 529 accounts
Christmas/vacation clubs Savings bonds
Money market mutual funds Treasuries

Who it's for

Just about everybody, says Douglas Borkowski, director of the Financial Counseling Clinic at Iowa State University. You get a rate of return closer to a stock-type investment without the stock-market-level risk. Because it's less liquid (and could return some decent interest), it's most effective for those needs that are a few years away, rather than the always-available emergency fund or saving for that big-screen TV you want to buy in the next few months.

That means the couple saving for a house in two or three years might be able to get a nice little dash of interest on their nest egg. And a college student who doesn't have a lot of extra cash can start putting a little away for after-college life.

Like CDs, you can also park money market mutual funds inside a tax-deferred account for retirement or college savings. And they continue to be popular with investors, as the low-risk, liquid part of a balanced financial strategy.

Trying to figure out which options best match your savings strategy? Here are several key points to compare and contrast at a glance.

minimal usually none yes no no complete
$1,000 - $50,000 yes no no no liberal
minimal usually 0 yes no no complete
$500 - $5,000 often yes no yes partial
$500 - $5,000 usually yes no no with penalty
minimal usually 0 no yes yes highly restricted
approx $25 yes yes no no restricted
minimum $1,000 yes yes no no restricted

-- Posted: Oct. 1, 2006

- advertisement -
- advertisement -
- advertisement -

About Bankrate | Privacy Policy/Your California Privacy Rights | Online Media Kit | Partnerships | Investor Relations | Press Room | Contact Us | Sitemap
NYSE: RATE | RSS Feeds |

* Mortgage rate may include points. See rate tables for details. Click here.
* To see the definition of overnight averages click here. ®, Copyright © 2015 Bankrate, Inc., All Rights Reserved, Terms of Use.