Finding the right investment tool to get the most from your savings can be a head-scratcher. There are so many options available, from savings accounts to stock investments. Most savers want to find the right investment tool that provides maximum yield with minimum risk, which is why more savers are purchasing certificates of deposit (CDs), also known as share certificates at credit unions.
Making the right investment move to meet your financial goals and suit your budget can be tricky—and frustrating. Many people just dump any extra cash into a savings or money market account. That’s a safe strategy, but the interest rates are very low. There are smarter ways to put your savings aside and yield a better return without risk.
Americans have always been poor savers. The recession put fear into many consumers, but the recent economic news has done little to encourage saving. Growth is strong, housing prices are up, and unemployment is low. However, the trend that should alarm Americans is that wage growth continues to be slow and is barely keeping pace with inflation. Personal savings rates have dropped to 2.4 percent, which is the lowest since 2005. Yikes!