Do you want to save up for college or a new business? Investing your saved funds is the wisest idea to multiply those funds. Commercial banks, such as the columbia bank sayreville, offer several helpful investment plans.
9 Investment Ideas In 2020
- Certificates of Deposits
These are fixed-term deposits that will mature after a specific time. CDs give a higher rate of interest than a savings account. Note that if you withdraw the money before maturity, you will be penalized.
- Short-term Corporate Bonds
Business corporations often raise money by selling funds to investors. You can buy shares for a maturity period of 1-5 years, which will also reduce the chances of interest rate fluctuations.
- House Renting
You can finance or purchase a new property and set it out on rent. It is an income that you will receive without any further investment. However, it limits your liquidity.
- Municipal Bonds
Similar to other types of bonds, local or state governments may raise money through selling bonds. These bonds offer you liquidity as you can buy or sell the shares every business day or leave it to mature.
- Money Market Accounts
These are ensured by FDIC and provide a higher interest rate than a savings account. They are highly liquid but also carry a lot of risks.
Other useful investment options are:
- Government bonds
They are issued and backed by the U.S government and offer high liquidity rates.
- High-yield saving accounts
Issued by FDIC-insured online banks, these accounts offer high rates of interest and are highly liquid.
- Nasdaq 100
These are stocks of the top 100 companies. They carry risks like other stocks and can be converted into cask on any open-market day.
- S&P 500
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These are the stocks of the top 500 American companies that offer a low expense ratio. Additionally, it is one of the least-risky investment options.
Every investment carries risk. It may be the company going bankrupt or your bonds being called off. Make sure that you investigate in detail before choosing any investment option.