During this days the winter is comming to an end and somehow the air seems fresher, the stockmarket is running steady, time to celebrate all women, and with the constant idea of filling all ways possible to Make One Million Euros in less than 5 years, the energy attracts new connections, one of them is my new friend. Brandon Rowe he is the webmaster at Bromoney.com an expert on deposit accounts, he kindly offers me to write for my blog an offer I could not refuse, he also gave us for free his just created savings rate firefox addon that you will find at the end of this post enjoy!
Everyone knows that the stock market is the best place to get a strong return on your investments. It's no surprise that the wealthiest people keep their money there in order to get the most out of their wealth. However, the big drawback to the stock market is risk. We all saw how risky the stock market can be for the short term. The Dow Jones dropped over 50% during the recession and it has taken quite a while and it still isn't back to the highs of where it was before the plunge. Over the long term it will end up being a great investment, but it has the potential to have stretches of years where you make no money or even lose money.
So what should investors do about this? Everybody should have some of their investments in deposit accounts because they are insured funds. You can't beat a guaranteed return on your investment now can you? Now when looking at bank deposit accounts, there are two main types you should be invested in: http://www.bromoney.com/
Certificates of deposits, or CDs, allow you to lock in a guaranteed rate for a specified period of time. The catch is that you can neither deposit money or take money out of a CD. The trade-off is that CDs usually have higher yields than your standard savings account.
With a savings account the interest rate you get is variable. It can change every month, so you're not guaranteed that your rate will remain high for years to come. You should invest some of your money in both types of accounts. This is true of not only for millionaires, but everybody. Some of your money can be locked away in CDs, and some can be stored in savings accounts, where you will be able to access the cash any time you please. These accounts give you access to cash when you need it, and also give you a return on your investment while giving you the peace of mind in knowing that you won't lose money while investing in deposit accounts.
Having deposit accounts will allow you to weather any sudden drops in the stock market, because you know you have plenty of money stashed away in your deposit accounts.
When you decide to open new deposit accounts, you should make sure that you're getting the best possible rate on your investment. Just because you're getting a lower rate of return than you would on the stock market, is no reason not to get the best possible rate of return on your deposits. Make sure to compare savings accounts and CDs online for the best rates.
Your local banks will sometimes offer great rates as well in order to attract new customers, so you should be on the lookout for these great deals. They often advertise high rates in local newspapers. You can also call up your local banks and credit unions to find out what rates they currently offer, and compare them to the rates you've found online.
If there's one thing that every millionaire knows, it's that compounding interest adds up to big earnings over time. So a half percent interest rate increase might not sound like a lot, but over 10 years the compounding interest will have a enormous effect on your deposit accounts.