The longer the time period, the greater the return. For the consumer willing to take some risks, money market mutual funds have become quite popular for those looking for even bigger returns. Though not as risky as playing the stock market, mutual funds invest in a wide range of tools, including stocks, corporate bonds and U.S. Treasuries. Returns are realized through income dividends, capital gain distributions or profits for selling shares. Mutual funds are not insured by the FDIC, but rather regulated by the Securities and Exchange Commission.
Younger adults are also more likely to take some risks as well.
Conventional savings accounts typically are used by and appeal mainly to older customers because they have used them throughout their lives. Any decision involving your savings should include an assessment of your age, risk tolerance and overall investment portfolio. As with any decision involving money, educating yourself is key. Recommendations on this web site do not endorse any commercial products or trade names.