Mutual funds or bank?

Question

With 20000 would it be better to put it in the bank making 8% interest or put it into a mutual fund. How do i go about getting a mutual fund who do i speak to the bank answers appriciated.

Answer 1

There is no such thing as a bank that gives you 8% interest, but if it is a reality to you, I'd suggest keeping the cash in the bank. Mutual funds aren't that good now with the stock market falling apart.

Answer 2

I agree, if you can get an 8% CD, go for it.  According to my money magazine, the highest CD, is a 5 year for 4.75%.  

Bank mutual funds tend to be expensive underperformers.  I would use one of the big mutual fund companies:  Fidelity, Vanguard, or TRowe Price.  Give them a call, or go to their web sites.

Answer 3

This "INVESTMENT GUIDE" is more helpful for you to make your money to make money for you,without taking any risk.

To gain more information ABOUT MUTUAL FUNDS,just gothrough the site http://www.savings4future.com .........

GOOD LUCK

Answer 4

I highly doubt you will see 8% return with either one.

I KNOW you won't at any bank see higher than 5%.

Answer 5

If you are in the USA, there is no bank that pays anywhere close to 8%.

If you are in New Zealand, or Philippines, then maybe.

I would not suggest putting money into a mutual fund at this time;  the world is awash in bad news and inflation.

Mutual funds will very likely not return anything significant for the next 2 years.  Wait until 2010.

Answer 6

If you can get 8% from a bank I'd put all of it in there.  You won't likely get 8% out of the market or any crappy mutual funds over the next 3 years.  Mutual funds charge fees that will eat at your profit and profit will likely be slim in the coming years in the market.  Besides money in the bank is much more liquid than equities.  If you need tha $20k for a downpayment on a house, car, hospital bills, etc you'll have it ready to go.

Answer 7

If you can get 8% in the bank, take it.

BUT it doesn't seem that any banks are paying that high of a rate.

There are many people just like you that are, or were looking to invest and those that did bought Mutual Funds and/or Exchange Traded Funds (ETFs).  One purpose of mutual funds is to help investors like you, who are either just entering the investment world or who have no investing experience.  Once you feel you at least have an understanding of investments you should look into ETFs which are similar to mutual funds but are traded on the exchanges.

Mutual Fund companies as well as ETFs have an entire array of products many will fit your needs. You can go to the MSN.Money website

http://moneycentral.msn.com/home.asp  it has an entire section on mutual funds and Exchange Traded Funds.  Read about the various products and in doing so you will be getting investment ideas and at the same time educating yourself about investing.

You could also contact the funds companies for more information.  I have found that Vanguard & Fidelity can meet your needs for mutual funds.  The service and information they provide is all free and you will find it helpful