1. 4.30% with Rewards Checking
You can earn 4.30% at Royal Banks of Missouri, but only on deposits up to $25K. Like other rewards checking requirements, in order to qualify for the 4.30% you have to open an account at a {Missouri|local) branch, make 10 qualifying debit purchases and one EFT transfer EACH MONTH - for the majority of investors that is too overwhelming.
2. Up to 7.4% at Bank Loan Mutual Funds
Some of the best bank loan mutual funds for 2010 according to SmartMoney Magazine are: 7.4% at Nuveen Senior Income(NSL), 6.6% at ING Prime Rate Trust(PPR),and 4.4% at Fidelity Floating Rate High Income(FFRHX).
Before you commit your cash, Realize that these investments aren't Government insured, and have risks like: volatility, restricted access to your funds (you can only withdraw quarterly or once a month), and the underlying bank loans you are laying out capital for are made to companies with low credit ratings and the default rate on these kinds of loans is currently 9.10%.
The good news is these investments provide steady income and will increase their dividends as the economy rebounds and interest rates increase. Because bank loan mutual fund prices are still low, you're also likely to gain from capital appreciation as well.
3. 1.55%+ Money Market Accounts
Zero Risk, FDIC Insured, increase with inflation, and grant access to your money anytime you need it. As the economy rebounds, yields from money market accounts will rise; although the returns may not seem exciting right now, they are probably going to rise in 2010.
Conscientious savers will on a regular basis check money market rates at an internet site similar to RateCatcher to make sure they are earning the best rates in the market.
Online, it only requires a few minutes to open an account; then you can take advantage of the almost certain rate hikes. So, beef up your emergency fund without delay by opening a money market account today.
Skyler Christensen has earned a BSBA and blogs about investing at RateCatcher.
His mission is to improve the return investors receive while decreasing risk.
Savers can gain more interest on savings account rates by visiting www.RateCatcher.com today.
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