In today's economic landscape, finding the right place to invest your hard-earned savings is more important than ever. Banks are currently offering low savings rates compared to where interest rates actually are. It's downright criminal. So where should you invest your savings since the bank won't help you out?
Here are a few options.
Schwab Value Advantage Money Fund - SWVXX: A money market fund that invests in high-quality, short-term investments issued by U.S. and foreign issuers. It's actively managed by a professional money manager. This fund currently has a yield of 4.25% as I write this. The biggest benefit of this fund is that you can access the cash anytime since it isn't "locked" up.
CD's: Bank CD's are a great place to put some extra cash as long as you won't need the money before the maturity date. Bank CD's are currently offering rates well above 4.5% going out 2 years or less. This is a great yield.
Government Bonds: As long as the debt ceiling debate doesn't end in a catastrophe, government bonds are offering great yields now too. Short term treasury bills are offering yields up to 4.75% for a year or less, meaning the money doesn't have to be locked up long term to earn some extra money. Some investors will feel more comfortable letting their investment manager handle this type of savings investment.
These are the safest options to put your savings to work rather than the bank theft happening to millions of Americans. Yes, you could always earn more investing in the next hot stock but this is your hard earned savings we're talking about here. Don't be dumb. Invest it. And invest it wisely.