We're all looking for a safe place to park our cash. It goes without saying that recent events in the financial world have left everyone a little jittery.
With negative interest rates becoming the norm in Europe, the threat of rock bottom or even negative interest rates reaching the U.S. has made previously trusted savings options a lot less trusted.
However, the show must go on when it comes to growing our savings and investments. Are there any sure bets when it comes to safely putting away our money?
You'll be pleasantly surprised to learn that there are many low-risk options available to you. It may also surprise you that you don't have to place your money in accounts using confusing, sophisticated financial practices in order to enjoy a little certainty.
Many of the most secure options are also the easiest to obtain. In addition, most of the best options available are offered by your neighborhood bank.
If you're looking for safe places to put your money in , take a look at the top 3 crash-proof savings options that are available to you.
Money Market Deposit Accounts
As long as you have enough money to qualify for one, a money market deposit account is a great place to store your savings. The best part about this type of account is that it's almost certainly offered by your local bank.
This type of account makes your money easily accessible. You'll be able to access your savings through ATM transactions, checks and money transfers. However, you will likely be limited to a certain number of transactions per month on your account.
The biggest perk of money market accounts is that they are backed by the FDIC. Of course, you should be aware that certain banks charge penalties if your funds should fall below a certain level or if you exceed the number of transactions allowed during a single period.
Putting your money in municipal bonds is a savvy move in today's economy. These bonds are issued by state and local governments in order to cover the costs of building schools, highways and other public projects.
You'll appreciate the fact that income earned from a bond is exempt from federal taxes if you live in the municipality that issued the bond. In some cases, state and local taxes are also waived.
U.S. Government Bills And Notes
Are you serious about safe bets when it comes to your money? Treasuries are considered to be the safest investments of all. And they are easy to obtain.
Treasuries can be purchased directly from the government without any commission. You will have the option to choose between Treasury bills or notes.
Treasury bills mature in under 1 year. Treasury notes can take anywhere between 2 and 10 years to mature. Which one you choose will depend largely on your investment strategy and plans for retirement.
The largest perk of both options is that what you invest will be exempt from state and local taxes. This is a great route to take if you don't want the hassle of shopping around for money market accounts, corporate bonds or CDs.