The Truth About Gambling with Your Investments

When you hear the word “gambling” you probably think of gambling games like poker, or all the casinos in Las Vegas.  If you haven’t ever put a nickel in a slot machine, you might assume you are not a gambler.  But, you might not even realize how you are taking a very big gamble with your money by placing it in risky investments.

Safely Investing Your Money

Investing your money in stocks can seems too risky for some individuals, and with interest rates lower now than in the past, they don’t feel bank accounts have anything to offer.  But, keeping your money at home can be  seem as a big gamble.  Banks, and the accounts they, offer are set up as an institution to help protect your money.  Since most banks are FDIC insured, your money is backed up by the government, to the legal limit, if the bank were to fail.  Banks also offer protection on your money because you aren’t able to freely access your money.  By having money in any type of an account, your money can’t be accessed frequently and easily, which means it will continue to gain interest in the account allowing the account balance to grow. 

Different Types of Accounts Available

There are three basic account offered from all different banks to help you find the one that works best for you.  These accounts would be considered the safe and easy way to invest your money.  These accounts don’t require knowing anything about stocks, trading, or the stock market, but are accounts set up simply to help you save and keep your money protected.

• Savings Accounts:  This account is one of the most basic accounts offered through banks.  There are savings accounts for specific purchases, for children, and accounts set up to simply help you continually save money.  Basic savings account typically don’t have any fees, but if they do there are ways available to avoid those fees.  Most savings accounts for children don’t have a minimum balance to open the account, or a certain amount the account must stay above.  This type of an account is a great way to teach your children early how to save money.  Different banks offer different interest rates, but finding the best account is easy using the best rates chart.  Savings accounts don’t offer the highest interest rates, but your money will make more interest in a savings account than in your sock drawer.
• Money Market Accounts:  A money market account is similar to a savings account, but usually limits the amount of withdrawals you can make each month.  This feature is one way to ensure your money stays in the account and gains interest.  Interest rates for money market accounts might be a little higher, but both money market accounts and savings accounts are simple ways to keep avoid taking a gamble with your money and know it is safe and protected.  To find the best interest rates for money market account, see the best rates chart.  
• Certificate of Deposits:  A CD is different than a money market or savings account in that you choose the amount of time, or term, you want to keep your money in the account.  The terms for CDs generally vary from three months to five years.  The interest rates for CDs are higher than savings accounts, but you are not able to withdraw your money until the term is completed.  If you withdraw the money before the term ends, you will be charged a fee.   If you have extra money you won’t be needing for a while, a CD is a great option.  The interest rates on CDs are higher the longer the term is.  To make the most money off your money, find a CD with a term that fits your needs and the best interest rates, by using the best rates chart.

While you still may think of gambling as losing all your money to a Vegas casino, not having your money protected in and FDIC insured account can be just as big of a gamble.  With all the different accounts available from many different banks, as well as online accounts, finding the account to fit your needs is easy and worth the time to ensure your money is protected.