Savings Accounts
Even if you've not fully paid off your consumer debt, it's still a good idea to set aside some of your monthly surplus for building a savings reserve. Make it a priority to set aside three to six months living expenses for emergencies. We suggest $10,000 as a starting point, but it's your call. After that, you may want to begin accumulating funds for a major purchase you are planning (such as a car).
For years, savvy savers have used online listings to shop the nation's top CD rates. Now, innovative online CD auctions are further empowering savers who are seeking the best return on their savings.
A recent survey asked, "If you were to lose your job, for how long could you afford to be out of work and still meet your financial obligations, including monthly expenses?" Good question. What's your answer?
The current pullback in available credit makes a painfully clear point: there is no reliable substitute for personal savings.
Savings rates are scraping along at historic lows. But you can still find some decent returns — if you shop around.
Think you don't need an emergency-reserve fund? Think again.
Here's a New Year's resolution for 2009: "I'm going to boost my savings!" How? We have three great suggestions.
For the 11th consecutive year, the money market funds recommended by SMI performed better than the average MMF.
Generations of readers have discovered the secrets of building wealth from the wise teacher Arkad, Babylon's richest man — as imagined by George S. Clason in his classic 1926 book.
For years, money market funds have been considered a "safe haven" for savers. But in this time of turmoil, just how safe are they?
It's not often that we have to completely re-evaluate basic strategies we've offered to readers. But recent events in the ultra short-term bond world are causing us to do exactly that.
It's a lesson we often only recognize in hindsight: once the emergency strikes, it's too late to prepare. This first-hand account illustrates why an emergency fund is one of the cornerstones of a healthy financial foundation.
In an unusual twist of events, current yields on money market accounts look very attractive compared with the money market funds SMI typically recommends. So should you switch? Here are three reasons to look closely before you leap.
Not too happy with your bank's rates or its customer service? A nonprofit credit union might be a good alternative for stashing some of your Level 2 savings.
To maximize your savings, it's important to match the correct savings tool with your expected time frame. These six tools offer a solution for every savings need.
Online savings accounts from ING and other providers have captured the attention of many prospective savers. How do they compare to the traditional money market funds that SMI has long recommended for your emergency fund?
Many savers deposit their money at a local bank simply because that's what they've always done. But the banking landscape has changed dramatically over the past decade, and the best savings deals are rarely found at the neighborhood bank anymore. Here's a brief walkthrough of the various savings tools available and the best places to find them.
Paying yourself last, out of your leftovers, is the most common reason people fail to meet their savings goals. Try these two paths to automated savings, and watch your saving habits turn around in no time.
Want to earn a decent interest rate while helping someone out with a small loan? That's the attractive proposition offered by new peer-to-peer lending services. While the concept is intriguing, it is also quite a large step up in risk from traditional savings vehicles. Here's an introduction.
The yield curve can tell us quite a bit about the economy, inflation, and interest rates. So what is the yield curve, and how do you go about interpreting it? We demonstrate why, in this case, a picture is worth 10,000 words.
Think the experts know which way interest rates will go next? Guess again.
How would you like to earn a 15% return on your savings this year? That's right, the same savings currently earning less than 4% in your money market account. We explain how this opportunity for big returns exists year after year.
If you're able to leave your savings invested for a while, you can afford to take on slightly more risk in pursuit of higher yields. In that case, short-term bond funds are an intriguing option. (For saving goals that are 2-3 years away.)
When saving for a goal that is a few years away, it pays to look beyond money market funds. Ultra-short term, short term, and GNMA bond funds are all useful savings tools for goals of varying lengths. Learn how to match your time frame with the appropriate savings product. (For saving goals that are 4-5 years away.)
The old tax adage says, "It's not what you earn, but what you keep." That's certainly true when it comes to choosing the right savings vehicle, particularly if you're a saver in a high tax bracket. Thankfully there's a simple formula that can guide you to the best products for your situation.
55 million Americans own them, so how complicated can they be? In the case of U.S. Savings Bonds, the answer is — plenty.
Investors often believe the returns from their bond funds are lower than they actually are. The cause of this confusion is usually their reinvested monthly dividends. We walk through an example illustrating how this dividend reinvesting process works.
Since most money market funds invest in the same kinds of securities, the interest income they earn for their shareholders tends to be similar. The differences in the returns investors receive are primarily due to a fund's operating costs. If your fund made our list of stinkers, it's time to consider a change.
How big a deal is the declining national savings rate? We examine this hotly debated question, and conclude there are four inescapable facts we must face regardless of the answer.
The use of online banking has exploded in recent years. What's behind the surge in client interest, and more importantly, does online banking offer anything you should be interested in?
How do online-only banks provide better yields for savers, and should you be concerned about safety risks when banking online? These are among the issues considered in part 2 of this series on online banking.
With interest rates creeping higher and savings yields moving back towards "normal," it might be tempting to think it doesn't make much difference which specific savings vehicle you choose. A closer look at the data reveals that isn't exactly the case.
Income-producing investments can be tricky to evaluate. In addition to the gain or loss realized when you sell the investment, you need to account for the income earned while you held it. Only in combining these two elements do you arrive at a total return figure that tells the whole story.
SMI regularly advocates using a money market fund for your emergency savings account. But what does a money market fund actually consist of? We've got the details.
The banking industry has been on edge since the mid-summer collapse of three banks overwhelmed by problem loans. If bankers are nervous, should you be, too?
The uncertainty of future interest rate moves makes it difficult to know what the best savings strategies are. Lock in today's rates? Stay liquid and hope for future rate increases? One strategy that helps eliminate some of the guesswork for savers is building a CD ladder. We explain why, and how, inside.
What if you could earn a competitive yield on your savings dollars and help others with that money at the same time? Sounds like a win-win. It turns out that you can, through the Self-Help Credit Union.
