A series of bank failures and credit rating downgrades since March this year has created panic among savers, with many worried that they will lose their money. Financial news website Money Talks suggests that if you have such concerns, you may want to find another place to store your cash. Here are some of the best places recommended by the website to keep cash other than banks:
Millions of people park their idle cash in Fidelity or Vanguard etc.investCompanies so that they have ready money available when they are ready to buy stock and make other investments.
This cash is usually automatically “swept” into another FDIC-insured, higher-interest savings account, called a sweep account or “sweep account”; This allows the customer to earn maximum interest, and the money is guaranteed, similar to a savings account with a bank.
One benefit of using a “scan account” is that it can protect deposits that exceed the FDIC’s standard protection limit of $250,000. For example, if the amount held in a “sweep account” exceeds $250,000, Fidelity notes that it “may use multiple banks instead of just one” to extend the customer’s FDIC coverage.
If you don’t want to keep your money in a bank, money market mutual funds are a relatively safe place to start.
Stacy Johnson, CEO of Money Talks, writes about money market mutual funds because they are low-risk, invest mostly in anything that can generate interest in the short term and can be eliminated at any time.
It is important to note that although the risk is low, money market mutual funds are technically considered an investment; Because they are investments, they are not insured by the FDIC, which means it is possible to lose money, although this probability is very small.
Deposits guaranteed by the Federal Deposit Insurance Corporation (FDIC) are virtually infallible, as is money “backed” by the U.S. federal government. If you believe that the United States will not go bankrupt any time soon, the U.S. Buying treasury bonds (Treasury) is the surest option.
As the government says, Treasury bonds are considered a safe investment option because the integrity and creditworthiness of the US government guarantees timely payment of interest and principal. Furthermore, most treasury bills are liquid and can be easily sold for cash.
Treasury bonds come in many forms. They are divided into short-term treasury bills (bills), medium-term treasury bills (notes), long-term treasury bonds (bonds), anti-inflation bonds (TIPS), floating rate notes, etc. etc. as per repayment period. Treasury bonds of different maturities can be purchased according to individual needs. If you’re really concerned about risks like bank failure, the U.S. Treasury bonds are a good option.
consumption(tagstotranslate)investment
