Ads by Google

Wednesday, January 14, 2009

Bank savings accounts, money-market funds,






Short-term investments mature in a short time, typically
Passbook savings accounts and money-market funds (instant access)
CD’s and T-bills (three months to a year)
Short-term investments are relatively safe because they are guaranteed by the government.
Disadvantages
Short-term investments pay a low rate of interest, like three to five percent. Short-term investments may lose value after adjustments for inflation.
Even though your money earns interest in a bank account, inflation can take away its real value. As the chart below shows, money in a bank’s passbook savings account and in money market funds often can’t make enough interest to offset the losses from inflation. That’s why it is important to understand the other ways to invest.

1 comment:

  1. At the moment through many aspects if we see things can be well managed tanner mainstain is there for them which is quite a fine thing.

    ReplyDelete