Stash Your Cash

Savings and emergency funds are always a good idea, what's better is stashing your cash in a safe place that earns you interest.  Even with interest rates at there lowest, earning interest on your money is the smartest thing you can do.

The national savings rates are probably at thier lowest point for several reasons. One factor has to be that the US has been in a recession. However, all bad things come to an end. Even though interest rates are very low they will recover to a better rate. Starting your stashing now prepares you for that time, it's a win-win move.

Where to stash your cash is the question. Here we will cover only the safest investment accounts, where you can stash some cash and earn money (interest) doing it.

Safe Investments

• Bank Deposits
• CDs
• Treasury Bills
• Corporate & Government Bonds
• Mutual Funds
• Commercial Paper
• Annuities

Although bank deposits aren't the highest yielding accounts, bank deposits are on of the safest places to stash some cash.  Bank deposit accounts include: Checking Accounts, Savings Accounts, and Money Market Accounts.

Making a bank deposit have gotten easier, not like it was so difficult before -- More and more banks are offering alternative ways to stash your cash in their bank.

CD stands for certificate of deposit, an it too is a form of a bank deposit. However, CDs have special restrictions which make their yield (interest earned) higher. Typically you purchase a CD with a set amount for a given term (period of time). At the end of that time (maturity date) you are given you initial investment (your set amount) plus the interest that was earned.

Some people, like retirees live off of the interest earned from CDs. Some have set up a CD ladder, which simple means that multiple CDs mature at different time -- always leaving liquid funds available. Others elect to have their CDs payout during the term of the CD, which provides a monthly income. When you elect to have CDs payout during the term of the CD, at the maturity date only your principal is return to you. That's because the interest on these CDs was payout during the term of the CD.