Hello everyone, I am new to investing and what I believe to be a relatively simple question. I currently have 3-5K in a savings account that is earning 2.XX percent in interest. I do not forsee using this money anytime soon. What would be my best bet for getting a higher return? I have looked into higher earning savings accounts, Money markets, and CD's. Any suggestions would be very much appreciated.
Thanks
28- or 90-day Treasury bills, at treasurydirect.com. They are currently paying just over 5%, and are exempt from state and local taxes.
Bob
I am new to investing and what I believe to be a
How long are you willing to leave the money wherever you choose to put it? How much risk are you willing to take (to get higher returns)?
GE Interest Plus is paying over 5%, and has check writing . See geinterestplus.com.
Mike
Get a couple of books on investing from the library. After you read them, buy one or two index funds.
Frank
GE Interest Plus, as the other poster recommended, is a good and safe choice. I've been using them for 10+ years. But if you're game at more risk for a higher yield, Ford Interest Advantage is almost identical to GE. It pays about 3/4% more, BUT Ford's credit rating is much shakier than GE's.
If the Ford account is tied to the credit rating of the Ford Motor Company, I would urge anyone who asked not to go anywhere near it.
There is a huge risk Ford will go into Chapter 11. The reason they will do so is it is the only way that it, Chrysler and GM can again be competitive in world car markets.
Credit rating has nothing to do with it. There is a permanent disadvantage arising to the Big 3 of competing, due to their agreements re healthcare, pensions and layoffs with the UAW. The only way out is via Chapter 11.
All of the big 3 have more retirees than workers. This is a legacy problem.
This happened in the steel industry, and hey presto the US has some of the lowest cost steel producers in the world (wages are high, but so is productivity). It is happening in the airline industry.
It's not a matter of if, it is a matter of when, and how, this restructuring is achieved.
I should add to my previous post that the credit rating agencies are a trailing indicator of the risk of default, not a leading indicator. You can't rely on a credit rating to predict trouble in advance.
Ford will restructure, and it will do so through a Chapter 11 type mechanism. Probably the only thing preventing them doing so to date is the family name on the company nameplate. But the family owns very few of the shares, now.
GE by contrast is a broadly diversified industrial and financial conglomerate. There are risks, but Immelt has cleaned up a lot of the balance sheet risks.
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