I rolled my eyes this morning, while listening to the headline that the Inflation rate has reached 3% for the first time since 2008, while the best rates for a CD are still between 1-2.5%. (For those who don't know, inflation is the overall rise in the price of goods and services and, therefore, decrease in the purchasing power of YOUR dollar. A CD, or Certificate of Deposit, is a special type of savings account that offers a higher rate of return in exchange for a committment to leaving the money in said account for a prespecified period of time.) This basically means that if you put your money in a CD, you are LOSING money.
Unless you are planning on spending that money in the next few years, invest it. (And I don't mean your run of the mill savings account, or you will REALLY lose money.) However, there is an exception. An account that I have doted on for the last couple years is Associated Credit Union's CU $ave More Account. You can earn a generous (and risk free) rate of return which is currently hovering around 5% on the first $500 in this account. As for the rest of your money.... If you are debt free and don't need the money, put it in mutual funds. (More specifically, I recommend a Roth IRA mutual fund because you can still withdraw your contributions without penalty at any time in case of an emergency.... But that lesson is for another day.) For now, close your CDs the first chance you get and head over to ACU if you are eligible.
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