When you feel that you had more Money in your savings account and want a higher rate of return, a CD (certificate of deposit) is a safe and simple stuff before tackling the stock market. To save on unnecessary fees, there is one detail that you will want to keep in mind. Your money will be locked away for a time of your choosing. Six months and one year are what most people sign up for. The penalty for early withdrawal is that you forfeit the interest you would have Earned to date in the current time period.
I once had a CD for $20,000. One day, I needed to buy a new water heater. My savings was short so I cashed it out a month before it matured. The time period was over. So, after waiting almost a year for my profit, I lost a couple hundred dollars in interest.
If I had to do it over again, I would have instead bought for CDs each for $5000 rather than a single $20,000 CD. If I had done this, I would've cashed out one of the small CDs to pay the unexpected bill. I'd have lost the interest earned on $5000 but I would have kept the interest earned on the other $15,000.
If you liked this idea then you might like my book, 100 Ways to Save a Dollar without Lowering Your Lifestyle, available for Kindle, all other e-book formats, and in paperback. One of the many items you'll find in it is a handy table telling you what in your house draws a lot of power and what doesn't.
I once had a CD for $20,000. One day, I needed to buy a new water heater. My savings was short so I cashed it out a month before it matured. The time period was over. So, after waiting almost a year for my profit, I lost a couple hundred dollars in interest.
If I had to do it over again, I would have instead bought for CDs each for $5000 rather than a single $20,000 CD. If I had done this, I would've cashed out one of the small CDs to pay the unexpected bill. I'd have lost the interest earned on $5000 but I would have kept the interest earned on the other $15,000.
If you liked this idea then you might like my book, 100 Ways to Save a Dollar without Lowering Your Lifestyle, available for Kindle, all other e-book formats, and in paperback. One of the many items you'll find in it is a handy table telling you what in your house draws a lot of power and what doesn't.
