Gain higher yields, but greater risk6 of 7Savers 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)."<< Back to Savings Deposit Essentials. Related Articles:Savings goals calculatorSavings accountsSafe places to park your cashAdvantages of savings accountsRelated Links:Saving in a low-yield worldShop for savings account ratesOnline banking benefitsDeposits insured to $250Kadvertisement
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)."
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.
By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.