Things You'll Need:
- Christmas Bonus
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Step 1
The first option that comes to most people’s minds is the ordinary bank savings account. You should keep in mind, however, that not all savings accounts are created equal. Your current bank may offer one that pays varying interest amounts based on the dollar amount you have available. If you feel comfortable with the rates, this is usually the most convenient option since you already have a relationship with the institution. It usually pays to shop around. Many banks may be paying a higher rate than yours. In fact, online bank branches such as ING and HSB usually offer rates up to ten times the national average while still providing the security of FDIC insurance.
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Step 2
Another viable option for safely investing your Christmas bonus is with a certificate of deposit or CD. CD’s are a time commitment investment. You agree to deposit your money for a fixed period of time from 3 months to 5 years (typically) in exchange for a higher rate of return than a personal savings account. Penalties are often in place to discourage early withdrawals. As with a regular savings account, it is wise to shop your money around.
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Step 3
A final example of a safe investment for your bonus is the purchase of a U.S. Treasury Note or Bond. These investment vehicles are issued by the United States Government and are available in 3 and 6 month terms for notes and 1 to 30 year lengths for bonds. Using the Treasury Direct website, you can invest in these with as little as $100.
Comments
Thims said
on 12/14/2008 Unfortunately, I can't put cheese in a savings account, however I'll bet it fits nicely in a saftey deposit box! ;-) Primo suggestions, good common sense advice.