MMAs One of the safest and easiest places to invest your money is at a financial institution. Almost all banks and thrifts have savings plans that are simple to understand and are backed by federal deposit insurance, which protects your money.
Banks offer everything from savings accounts to stock-indexed CDs.
If you are more sophisticated, pick CD terms and shift money among accounts according to your financial goals and time periods. Checking accounts are primarily considered transaction accounts. Some checking accounts pay interest, averaging only 1 percent, while others, usually with smaller dollar requirements, do not. Checking accounts are great for paying bills and having paychecks electronically deposited, but they're wrong for saving and investing because they pay piddling interest. These accounts pay interest, although the rates are often lower than many other types of investments.