Lux Investing
CD, high yield savings, or money market for $5K bonus?
I have $5K and need advice: 1. Should I do a CD ladder? Interest rates are really low right now making me wonder... 2. Should I just dump it all into my high yield savings? 3. I'm not familiar with money markets, but the rates are comparable to a high yield savings. Note: I have enough invested in my retirement and individual accounts.
Public Comments
- Here are several suggestions. I do not have a financial interest in any of these websites. Yahoo allows you to search for rates at this site: http://finance.yahoo.com/rates/query?t=s Consider the the Vanguard Prime Money Market Fund. If you are in a high tax bracket you may prefer their tax exempt money market funds: https://personal.vanguard.com/us/FundsByType Sometimes other institutions will have a higher teaser rate, but Vanguard tends to have the highest yields I've found over the long run. (Vanguard money markets are not FDIC insured, however.) Article on teaser rates: http://www.marketwatch.com/news/story/banks-advertised-rates-dont-always/story.aspx?guid=%7B0A13B6E2-FFB2-4E2B-BD42-E2D1E01C52E5%7D Bankrate.com provides links to CD's with high interest rates as well as high interest rate banks. http://www.bankrate.com/ ING and HSBC often have rates close to Vanguard, and most of their products are FDIC insured. You can check these at the following links: http://home.ingdirect.com http://www.us.hsbc.com
- high-yield savings would be the first thing I would do. Then, when interest rates went up, put the money into a certificate of deposit account
- Savings while the market sux. I'd consider some/all of it in your retirement fund and/or 529/CESA (if you have kids).
