Andrew Lokenauth | TheFinanceNewsletter.com
Andrew Lokenauth | TheFinanceNewsletter.com

@FluentInFinance

9 Tweets 1 reads Dec 25, 2022
The best place to keep your savings depends on your financial goals & risk tolerance.
It's good to have some of your savings in a safe, low-risk account, (high-yield savings account or CD), while keeping some in a more liquid account,(checking or money market), for easy access.
It is also important to diversify your savings by holding a mix of different types of accounts and investments.
Here are a few options to consider:
High-yield savings accounts:
These bank accounts offer higher interest rates than traditional savings accounts.
They often have no or low minimum balance requirements and are FDIC-insured up to $250,000, which means your money is backed by the government if the bank fails.
High-yield savings accounts are a good option for keeping your savings safe while also earning a bit of interest.
Certificates of deposit (CDs):
Certificates of deposit (CDs):
CDs are deposits that you make with a bank or credit union for a specific period of time, usually ranging from a few months to a few years.
In exchange, you receive a fixed interest rate.
CDs are FDIC-insured up to $250,000 and are generally considered to be a safe place to keep your savings.
However, they are not as liquid as other accounts, as you may have to pay a penalty to withdraw your money before the end of the term.
Money market accounts:
Money market accounts:
Money market accounts are a type of savings account that offers a higher interest rate than traditional savings accounts and can be a good option for keeping your savings safe.
They often have higher minimum balance requirements than other savings accounts, and they may also have limited check-writing capabilities. Money market accounts are FDIC-insured up to $250,000.
Treasury bills:
Treasury bills:
Treasury bills are short-term debt securities issued by the U.S. government.
They are considered to be a safe investment, as they are backed by the U.S. government.
However, they do not offer a high rate of return, as they are meant to be a low-risk investment.

Loading suggestions...