How Do You Invest Your Money Safely In 2010?

Right now, with the economy tanking and the stock market not doing much better, people want to know where to go to find the best interest rates. They are scared and don’t know what to put their money in that is totally safe. Many folks will willingly give up a higher rate of return right now just to make sure their money is safe. So, if you do have money to invest and want to get more than an interest checking account or savings account pays, what kind of options do you have?

Today’s most secure investment is likely an FDIC insured bank CD, which is guaranteed, in actuality, by the United States government. The FDIC failing to insure your CD would only happen in the event of a complete U.S. government collapse, which means that it is highly unlikely that your money is in any jeopardy. It is too bad, though, that certificates of deposit are currently at an all time low rate of 1% currently.

Strangely enough, the best CD rate is not always the one with the longest term. Sometimes when you go into a bank looking for the highest rates, you will notice that the 30-year CD or 15 year CD actually has a lower rate than something for less years. Also, because of a special promotion, you may be able to get the best rate with one of the shorter terms CD’s.

These low rates really hurts all the people that need interest income to help them get by which are often retired people and seniors. It may be advisable for young people to invest in stocks and other vehicles that have some risk and can give a better rate of return but not older people. This is because young people have a long time horizon and can withstand market fluctuations but older people need to have their money available at all times.

For safety, other good alternatives are Treasury bills, or just holding on to your cash. In reality, you are providing the U.S. government with a free loan, and the rate of return is lower than that of a CD. . Holding on to cash means that your nest egg will not keep up with inflation, and the value of your money will decrease. The majority of individuals are experiencing financial difficulties during this time of economic turmoil.

Do you want to learn about getting the best no risk CD rates? Please go to my website Interest Rates On CDs to learn more.