RateAPY

Investors Seek Safety

Posted by: RateAPY Bank Rates News
November 20th, 2009

Cash was king again this week. Investors sold stocks and increased their positions in fixed-income instruments on doubts that the economy is truly recovering. This was amidst economic indicators that the economy might be stabilizing.

Money Market Accounts and CDs A Safe Haven

During times of economic uncertainty and mixed messages, investors rely on money market accounts and certificates of deposit to provide sure returns while minimizing their risk. Money market accounts and CDs backed by the FDIC ensure that the principal invested won’t be lost and will yield a positive return.

As you increase the percentage of your portfolio held in these deposit accounts, it is all the more important to shop for the highest yields offered by banks. A common goal of a safe investment is to outpace inflation. Though rampant inflation is not yet a concern, keep an eye on savings account interest rates and CD rates to make sure you stay ahead.