Joe
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Consider the Vanguard Prime Money Market Fund with a current compound yield of ~4.45% APR.
https://flagship.vanguard.com/VGApp/hnw/FundsSnapshot?FundId=0030&FundIntExt=INT
Sometimes other institutions will have a higher teaser rate, but Vanguard tends to have the highest yields I've found over the long run. (Vanguard money markets are not FDIC insured, however.)
Article on teaser rates:
http://www.marketwatch.com/news/story/banks-advertised-rates-dont-always/story.aspx?guid=%7B0A13B6E2-FFB2-4E2B-BD42-E2D1E01C52E5%7D
Bankrate.com provides links to CD's with high interest rates as well as high interest rate banks.
http://www.bankrate.com/
http://www.bankrate.com/brm/rate/deposits_home.asp
ING and HSBC often have rates close to Vanguard, and most of their products are FDIC insured. You can check these at the following links:
http://home.ingdirect.com/open/open.asp
http://www.us.hsbc.com/1/2/3/personal/savings?code=husa
(If she is investing for a long period of time and is willing to accept some volatility, she should consider putting some money into no-load low-expense mutual funds. These are not guaranteed, but over the long run produce much higher returns.) |
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BLKBELT1
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try a cd for 8 to 12 months, you usually get around 3 to 5% |
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koiboy
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Open up an online savings account and get 3x-4x the amount in interest you're currently making. I had money in a couple of them a couple of years ago and made over $2000 in interest in one year. But of course, that's when the interest they were paying out was almost 5%. It's currently averaging 3.75% now. These accounts are more flexible and you can take out the money within 3 business days. You can do everything online and have the money transferred into one of these accounts within a week. |
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Dentist H since 2001
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you should get a cd. expect about 4% in return. |
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J
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That is why most bank products are poor. they really take advantage of their customers. There are several on line banks that pay more. e.g. ING or Orange, Also money market funds such as Vanguard Money Market Prime. With the Fed rate cuts most savings and money market rates will go down. CDs come in all maturities so you could split the money up and buy some 6 mos, or 12 mos or even 2 yr CDs and put some in a money market fund (if you feel she may need some money). It takes a minimum of $3000 for Vanguard Money Market Prime. So do that and buy a $1000 1 yr and 2yr CD. She will learn about CDs and Money Market funds and the need to make her money work for her instead of the bank |
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dodgefreak55
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I would recommend that you go to your nearest bank and put it into a 4.5% FREE saving account. |
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raysor
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A bond would pay better, and don't forget interest rates are still going down which will help the bond price |
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jeff
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if she can wait to get the money years later, yes |
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Toddacanda
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a bond may yield higher interest but there might be substantial penalties for early withdrawal so you should diversify her portfolio. |
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horomnizon
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I don't know a lot about bonds....and you didn't say how old your daughter is....if she's soon to need it for a car or college, be careful about penalties for withdrawing from some financial services.
You can try a higher interest savings account like the Orange Account from ING direct. Go to www.ingdirect.com
I don't think that's been lower than 3% and it has been as high as 4.5% over the 5+ years or so I've had mine. Plus, you have access to the funds through electronic transfer. It does take a couple of days, though. |
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Si
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are you sure you can get bonds that cheap??
a long term investment always has a higher rate then a bond
...try online credit unions, they offer the highest return ive seen. |
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Robert C
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throwing it up in the air and catching it would prob. gain you more interest than that
check out www.bankrate.com |
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beastseekbeauty@yahoo.com
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Even now, you can go to TDameritrade, get a 3 month CD at 5.3 % - just make sure you don't need the money for that time! |
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ivan c
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My roommate had his dad get him a mutual fund with 10,000 dollars and he was seeing a pretty good return. I personally would recommend looking at Mutual Funds. Just look around. |
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thewallstreethunter
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honestly, if you need guarenteed return, you need a money market account or a cd.... but historically since she is young and has a long time to work with the money,, the stock market is the best return for money in the long run..... Stocks return an average of 10% a year.... you can do even better if you are in the right stocks,, you should check out a site like www.thewallstreethunter.com for some good market information and excellent stock commentary....
Good luck |
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Formerly known as Frank Castle
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Yes. |
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MM
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There are some online banks that offer much better rates. Etrade currently offers 5%. |
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The White Guinea Pig
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1%????? get it out of there fast! |
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