CDs, saving accounts?
I have my money in a CD at Bank of America and it’s about to mature. The total is under $10,000 so it’s government insured. Where can I get a higher interest rate but still be sure that I can get my money back?
Bonds are a step up from a CD. They work similar to a CD in that you purchase them, they pay interest, and then mature. They can yield anywhere from 5% to 20% depending on what you buy. The difference is that when you purchase a bond you are lending your money to a corporation instead of a bank where the deposit is FDIC insured. Because of this, bonds are slightly riskier than CDs. If the company you purchase a bond from goes bankrupt, you may lose some of your investment. To stay safe, buy bonds in strong stable companies such as Walmart or GE. Consult a stock broker or open up your own online brokerage account (cheaper but more involved) to get going.