Looking for an easy way to invest? There are many ways you can put your money to work, and these are some of the top ways.
A certificate of deposit. This is an investment that works by putting a sum of money into an account and deciding on a maturing date. You can choose the amount. You can also choose the maturing date, anywhere from a few months to years. The difficulty with this kind of account is that you cannot access this money until the money has matured without significant penalty.
A mutual fund. This form of investment has a higher rate of return but also a higher risk factor. In order to invest in mutual funds, you entrust your money to an investor, who has a certain collection of investments, called a portfolio. This portfolio may have mostly international or national investments, and may be in different fields as well.
A High-yield savings account. A high-yield savings account is much less accessible than a regular savings account, meaning you cannot as easily retrieve your money. However, it gets a much better rate of return, making it a good option for any extra cash.
Savings bonds. A savings bond is similar to a certificate of deposit in that you put a lump sum of money down, and then can collect it again after it has matured. Savings bonds are generally long term investments as well.
Individual Retirement Account. An IRA is a certain type of account that you can begin at any time, but which you cannot access without penalty until you are at least fifty-five years old. However, unlike a certificate of deposit or a savings bond, you are able to add money to this account periodically. The more difficult part of this type of investment is that it is extremely long term. If you are looking to invest your money to save for retirement, this is the investment you should be interested in. If you are merely looking to invest short term, trying a high yield savings account or certificate of deposit may be your best option.