If all I have is a non-interest checking account and I want to begin saving money, what is my best option?
Question:
Money Market Account?
CD?
Stock Market?
Answer:
Start small and open a savings account. Then open mutual funds when you become more comfortable. Always remember to never put all your eggs in one basket. So you in the end should have assets in checking, savings, mutual funds, and stocks. Check your financial advisor at your local bank to see what is the best thing for you do to do in terms of stock.
I'd highly recommend opening an ING Direct savings account. It currently offers a 4.5% interest rate with no fees. If you are interested in opening an account let me know I can refer you and you may be able to get a $25 bonus.
I hope this helps.
Stop writing checks and open a money market account.
Savings accounts make the bank money and the interest they pay lags inflation.
The stock market is too speculative and unstable. You need to have money to make money there also.
Once the money market account has increased your savings enough put most of it into a CD and start a building new money market account.
CD's are safe and pay interest but do have early withdrawl penalties which inspires many to not take an early cashout. A sort of forced savings plan in essence. Budget a reasonable amount to put in each month and make adjustments for non essential expenses from whats left after paying bills.
Mutual Fund
They'll start you with a savings or money market account. If you have steady savings, it will be the money market. If you have enough to put aside, go with the CD's. The stock market, stay blue chip, thank you.
Mutual funds are a good go at around a 12% rate. Contact your local Primerica office. They should be able to get you started for as little as $25 a month.
The most important thing is you start saving. It's less important where you put your money. You can always move it somewhere else. And before you go into the market make sure you understand it. Get into the habit of saving A.S.A.P.
One of the best things you can ever do for yourself. Good Luck.
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