savings

5 smart-money tips on low savings rates

Gain higher yields, but greater risk
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Yield and dollar signs

Savers who are willing to accept more risk in the quest for fatter yields can consider such investments as bond funds, dividend-paying stocks, real estate investment trusts or callable government agency bonds issued by Fannie Mae and Freddie Mac, Wright says. These types of investments offer the prospect of higher returns, but they're not FDIC-insured so the risk of loss is greater as well.

"There is a risk whenever you buy a stock and people need to be aware of that," Wright says. "The stock price could be lower in three years. But it is a way to potentially get a higher return on your investment if you have some time (before you need the money)."


 

 

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