Where To Place Cash For Future Use?

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1) Savings Account

Savings accounts are safe ways to store cash. FDIC covers most bank deposits. If a bank fails, the FDIC assures you won't lose your money.

Depending on how much you save and your account's interest rate, you'll make money as well.

2) Checking account

If you keep your spending in check, a checking account can be a good place to save cash you'll need within a year. 

FDIC guarantees checking and savings accounts up to $250,000 each. Opening a checking account prevents a market slump from draining your cash.

3) A 1-year CD

Worried you'll spend your savings? If so, put it in a one-year CD, which is like a savings account with restrictions. CDs yield interest. 

Your CD interest rate depends on your bank, term length, and amount held, but you will surely withdraw more than you deposited.

4) In Money Market A/C

Money market accounts provide higher interest rates than checking accounts, like savings accounts. These accounts provide higher interest rates than savings.

If you have a large sum of cash you wish to access as needed, a money market account may yield you higher interest.

5) Treasury bills

Investing in Treasury bills ensures you'll get your money back plus interest. Treasury bills have short periods of a few days to 52 weeks, unlike Treasury notes and bonds.

Treasury bills might be a good option for investors who wish to keep their money out of sight while yet receiving a steady return on it.

6) Short-term bond funds

You can also keep money you need shortly in a short-term bond fund. Short-term bond funds hold bonds maturing within five years.

Short-term bond funds often offer a moderate positive return. Though rare, negative returns over a year's time are not unheard of.

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