Are savings accounts good investments?

During the recent recession years, investors have watched their opportunities decline. Retirees on fixed incomes were depending on the interest from their bank investments to supplement their pensions. Unfortunately, bank investments are slightly better than putting your savings under your mattress.

Building a nest egg for retirement appears to be almost impossible. Rates that banks are paying cannot possibly keep up with inflation. Long-term investments are discouraging because your money is locked in for a few years, and it might be worthless at the maturity date.

What investments are best for you?
Everyone wants to get the best return on his or her investments. However, each person has different financial needs, and different opportunities that fluctuate with the amount of money available for investing. Certainly, those with little to invest would not want to invest in high-interest risky investments. However, people who can afford the loss on an investment should take higher risks.

Nevertheless, the average family should plan a budget that includes money for both safe and high-risk investments. The safe investments should be firmly in place before the high-risk investments are made. Your safe deposits should be available immediately in case a financial interruption occurs.

Pay Yourself First
The secret for having enough retirement income is to pay yourself first. It is never too early to begin making monthly deposits to your retirement accounts. The sooner you begin, the more you will accumulate. Furthermore, the amount of the deposit does not need to be large. However, it must be consistent.

Money that you never see, such as taxes withheld, is never missed. You should treat your personal savings in the same manner. Your savings-account payment should be as regular as your home mortgage.

Finding Money for Savings
Every budget begins with listing all of your income and expenses. By subtracting the expenses from the income, you have the discretionary spending amount. The first item allocated from this amount is your savings account. Be realistic in determining the amount you wish to save. Remind yourself that the amount is a regular payment made to yourself.

The Beauty of Savings Accounts
Although investing in long-term investments will give you higher interest, your money is not available without penalty. Checking accounts pay almost no interest, but your money is currently available for any emergency. Therefore, you should find a savings account that pays the highest interest. For example,?visit Discover Bank for more information.

Savings accounts are ideal for a young couple to save for a home down payment. Young parents can easily use savings accounts to save for their children?s education. Even the average family can take advantage of the high-interest rates to save for retirement.

Savings accounts have the advantage of keeping your cash available, and rewarding you if you do not need to withdraw it. During these times of low-interest rates and economic uncertainty, savings accounts appear to be one of the best options for you.

Tagged accounts, bills, expenses, investing, money, saving

Source: http://www.sterlingeffort.com/savings-accounts-good-investments

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