By Steve Sjuggerud in True Wealth:
I'm not sure where you're holding your cash... whether it's in CDs, money-market accounts, or actual cash at home.
While we'll need to get out of cash at some point, here are some ideas for where to park it now to boost your returns. I'll start with the safest...
The safest, simplest thing you can do is maximize the yields on your CDs and money-market savings accounts.
EverBank, for example, offers its YieldPledge CD. EverBank promises to always pay an interest rate in the top 5% of nationwide interest rates. Right now, it offers a 3.5% introductory rate on CDs. You won't get rich on that, but it's FDIC insured, and EverBank is solid.
If you're willing to take a little bit more risk – meaning risking your principal a bit – then you can beat CD rates by a wide margin. For example, you'd have to earn more than 4% in a taxable account (like a CD) to equal what you can earn in short-term tax-free funds...
I'm talking about tax-free income funds like…
Crux note: The latest issue of
True Wealth is a full guide on the safest, highest-yielding places to park cash. To learn more about
True Wealth and the U.S. Treasury Department's "Gold Glitch,"
click here.
