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How to Choose Between Bonds, CDs, and Savings Accounts

How to choose between: BONDS vs CDs vs SAVINGS ACCOUNTS Remember: Always consult a financial advisor before making investment decisions! This chart just outlines some basic guidelines. Do you need ready access to your money? Yes. Yes, but not in the next year. No, not for the foreseeable future. How much money do you plan to invest? Less than $250,000. $250,000 or more. Which is more important to you? Higher return on investment. Lower risk. GET A SAVINGS ACCOUNT A savings account is one of the only ways to generate a little bit of interest and still have GET A GET A access to withdrawing your money whenever you need. 1-Yr CD BOND GET A Pros: Insured by the FDIC. A Certificate of Deposit will get you better interest rates than a savings account, but it locks your money up for a set period of time. The longer the time, the more interest it pays. 5+Yr CD' Low account minimums. Bonds are backed in full by the U.S. government. Generally they are long-term and have hefty penalties for early withdrawals, but they are relatively secure and safe. Easy access to funds. A longer-term CO will yeild higher interest rates than most bonds and savings accounts; however, CDs generally aren't a good option for institutional investors or those with upwards of $25ok to invest. Cons: Interest rates are obscenely low. Pros: Insured by the FDIC. Higher interest rates than savings accounts. Pros: Government backed. Good long-term interest. Secure for large investments. Cons: Your money is off-limits unless you want to pay а penalty. Pros: Insured by the FDIC. Higher interest rates. Cons: Your money is off-limits Easy to shop around for the best rates. Cons: Your money is off-limits unless you want to pay a penalty. Not backed by the government after $250k. unless you want to pay a penalty. Some bonds, especially municipal bonds, yield lower interest than CDs. . "Bond and CD rates frequently fluctuate. As of Sept 2010 5-year COs yeild higher rates than 5-year bonds, on average Sources: BankRate, Teenvestor, The Motley Fool visualeconomics.com How to choose between: BONDS vs CDs vs SAVINGS ACCOUNTS Remember: Always consult a financial advisor before making investment decisions! This chart just outlines some basic guidelines. Do you need ready access to your money? Yes. Yes, but not in the next year. No, not for the foreseeable future. How much money do you plan to invest? Less than $250,000. $250,000 or more. Which is more important to you? Higher return on investment. Lower risk. GET A SAVINGS ACCOUNT A savings account is one of the only ways to generate a little bit of interest and still have GET A GET A access to withdrawing your money whenever you need. 1-Yr CD BOND GET A Pros: Insured by the FDIC. A Certificate of Deposit will get you better interest rates than a savings account, but it locks your money up for a set period of time. The longer the time, the more interest it pays. 5+Yr CD' Low account minimums. Bonds are backed in full by the U.S. government. Generally they are long-term and have hefty penalties for early withdrawals, but they are relatively secure and safe. Easy access to funds. A longer-term CO will yeild higher interest rates than most bonds and savings accounts; however, CDs generally aren't a good option for institutional investors or those with upwards of $25ok to invest. Cons: Interest rates are obscenely low. Pros: Insured by the FDIC. Higher interest rates than savings accounts. Pros: Government backed. Good long-term interest. Secure for large investments. Cons: Your money is off-limits unless you want to pay а penalty. Pros: Insured by the FDIC. Higher interest rates. Cons: Your money is off-limits Easy to shop around for the best rates. Cons: Your money is off-limits unless you want to pay a penalty. Not backed by the government after $250k. unless you want to pay a penalty. Some bonds, especially municipal bonds, yield lower interest than CDs. . "Bond and CD rates frequently fluctuate. As of Sept 2010 5-year COs yeild higher rates than 5-year bonds, on average Sources: BankRate, Teenvestor, The Motley Fool visualeconomics.com How to choose between: BONDS vs CDs vs SAVINGS ACCOUNTS Remember: Always consult a financial advisor before making investment decisions! This chart just outlines some basic guidelines. Do you need ready access to your money? Yes. Yes, but not in the next year. No, not for the foreseeable future. How much money do you plan to invest? Less than $250,000. $250,000 or more. Which is more important to you? Higher return on investment. Lower risk. GET A SAVINGS ACCOUNT A savings account is one of the only ways to generate a little bit of interest and still have GET A GET A access to withdrawing your money whenever you need. 1-Yr CD BOND GET A Pros: Insured by the FDIC. A Certificate of Deposit will get you better interest rates than a savings account, but it locks your money up for a set period of time. The longer the time, the more interest it pays. 5+Yr CD' Low account minimums. Bonds are backed in full by the U.S. government. Generally they are long-term and have hefty penalties for early withdrawals, but they are relatively secure and safe. Easy access to funds. A longer-term CO will yeild higher interest rates than most bonds and savings accounts; however, CDs generally aren't a good option for institutional investors or those with upwards of $25ok to invest. Cons: Interest rates are obscenely low. Pros: Insured by the FDIC. Higher interest rates than savings accounts. Pros: Government backed. Good long-term interest. Secure for large investments. Cons: Your money is off-limits unless you want to pay а penalty. Pros: Insured by the FDIC. Higher interest rates. Cons: Your money is off-limits Easy to shop around for the best rates. Cons: Your money is off-limits unless you want to pay a penalty. Not backed by the government after $250k. unless you want to pay a penalty. Some bonds, especially municipal bonds, yield lower interest than CDs. . "Bond and CD rates frequently fluctuate. As of Sept 2010 5-year COs yeild higher rates than 5-year bonds, on average Sources: BankRate, Teenvestor, The Motley Fool visualeconomics.com How to choose between: BONDS vs CDs vs SAVINGS ACCOUNTS Remember: Always consult a financial advisor before making investment decisions! This chart just outlines some basic guidelines. Do you need ready access to your money? Yes. Yes, but not in the next year. No, not for the foreseeable future. How much money do you plan to invest? Less than $250,000. $250,000 or more. Which is more important to you? Higher return on investment. Lower risk. GET A SAVINGS ACCOUNT A savings account is one of the only ways to generate a little bit of interest and still have GET A GET A access to withdrawing your money whenever you need. 1-Yr CD BOND GET A Pros: Insured by the FDIC. A Certificate of Deposit will get you better interest rates than a savings account, but it locks your money up for a set period of time. The longer the time, the more interest it pays. 5+Yr CD' Low account minimums. Bonds are backed in full by the U.S. government. Generally they are long-term and have hefty penalties for early withdrawals, but they are relatively secure and safe. Easy access to funds. A longer-term CO will yeild higher interest rates than most bonds and savings accounts; however, CDs generally aren't a good option for institutional investors or those with upwards of $25ok to invest. Cons: Interest rates are obscenely low. Pros: Insured by the FDIC. Higher interest rates than savings accounts. Pros: Government backed. Good long-term interest. Secure for large investments. Cons: Your money is off-limits unless you want to pay а penalty. Pros: Insured by the FDIC. Higher interest rates. Cons: Your money is off-limits Easy to shop around for the best rates. Cons: Your money is off-limits unless you want to pay a penalty. Not backed by the government after $250k. unless you want to pay a penalty. Some bonds, especially municipal bonds, yield lower interest than CDs. . "Bond and CD rates frequently fluctuate. As of Sept 2010 5-year COs yeild higher rates than 5-year bonds, on average Sources: BankRate, Teenvestor, The Motley Fool visualeconomics.com How to choose between: BONDS vs CDs vs SAVINGS ACCOUNTS Remember: Always consult a financial advisor before making investment decisions! This chart just outlines some basic guidelines. Do you need ready access to your money? Yes. Yes, but not in the next year. No, not for the foreseeable future. How much money do you plan to invest? Less than $250,000. $250,000 or more. Which is more important to you? Higher return on investment. Lower risk. GET A SAVINGS ACCOUNT A savings account is one of the only ways to generate a little bit of interest and still have GET A GET A access to withdrawing your money whenever you need. 1-Yr CD BOND GET A Pros: Insured by the FDIC. A Certificate of Deposit will get you better interest rates than a savings account, but it locks your money up for a set period of time. The longer the time, the more interest it pays. 5+Yr CD' Low account minimums. Bonds are backed in full by the U.S. government. Generally they are long-term and have hefty penalties for early withdrawals, but they are relatively secure and safe. Easy access to funds. A longer-term CO will yeild higher interest rates than most bonds and savings accounts; however, CDs generally aren't a good option for institutional investors or those with upwards of $25ok to invest. Cons: Interest rates are obscenely low. Pros: Insured by the FDIC. Higher interest rates than savings accounts. Pros: Government backed. Good long-term interest. Secure for large investments. Cons: Your money is off-limits unless you want to pay а penalty. Pros: Insured by the FDIC. Higher interest rates. Cons: Your money is off-limits Easy to shop around for the best rates. Cons: Your money is off-limits unless you want to pay a penalty. Not backed by the government after $250k. unless you want to pay a penalty. Some bonds, especially municipal bonds, yield lower interest than CDs. . "Bond and CD rates frequently fluctuate. As of Sept 2010 5-year COs yeild higher rates than 5-year bonds, on average Sources: BankRate, Teenvestor, The Motley Fool visualeconomics.com How to choose between: BONDS vs CDs vs SAVINGS ACCOUNTS Remember: Always consult a financial advisor before making investment decisions! This chart just outlines some basic guidelines. Do you need ready access to your money? Yes. Yes, but not in the next year. No, not for the foreseeable future. How much money do you plan to invest? Less than $250,000. $250,000 or more. Which is more important to you? Higher return on investment. Lower risk. GET A SAVINGS ACCOUNT A savings account is one of the only ways to generate a little bit of interest and still have GET A GET A access to withdrawing your money whenever you need. 1-Yr CD BOND GET A Pros: Insured by the FDIC. A Certificate of Deposit will get you better interest rates than a savings account, but it locks your money up for a set period of time. The longer the time, the more interest it pays. 5+Yr CD' Low account minimums. Bonds are backed in full by the U.S. government. Generally they are long-term and have hefty penalties for early withdrawals, but they are relatively secure and safe. Easy access to funds. A longer-term CO will yeild higher interest rates than most bonds and savings accounts; however, CDs generally aren't a good option for institutional investors or those with upwards of $25ok to invest. Cons: Interest rates are obscenely low. Pros: Insured by the FDIC. Higher interest rates than savings accounts. Pros: Government backed. Good long-term interest. Secure for large investments. Cons: Your money is off-limits unless you want to pay а penalty. Pros: Insured by the FDIC. Higher interest rates. Cons: Your money is off-limits Easy to shop around for the best rates. Cons: Your money is off-limits unless you want to pay a penalty. Not backed by the government after $250k. unless you want to pay a penalty. Some bonds, especially municipal bonds, yield lower interest than CDs. . "Bond and CD rates frequently fluctuate. As of Sept 2010 5-year COs yeild higher rates than 5-year bonds, on average Sources: BankRate, Teenvestor, The Motley Fool visualeconomics.com

How to Choose Between Bonds, CDs, and Savings Accounts

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When it comes to your finances sometimes the terms can get confusing. This infographic shows the difference between bonds, CDs and savings accounts. Make sure to speak to a financial consultant if you...

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