Where can I invest American Dollars to get the best interest rates without Risk?

Question

My banks interest rates have dropped. Now it is 1.7 pecrent in a savings account, or a little better in a CD. I am looking to possibly invest some money elsewhere. Please let me know if there are any no risk options out there with better interest rates.

Thanks

Answer 1

Everyone has done a great job on informing you so far. One thing I would add. If you do decide to go into the somewhat riskier side of investing, please do not go to an investment office right away. Most charge you for their time even if you decide you don't want to invest. A lot of banks have an asset management branch. The majority of banks where I live do your consulting and business for free. If you like what they say and would still like to go to the other investment agencies, then by all means go. But, utilize free services first. No sense in throwing away some of that money just for a meeting that others do for no cost to you.

Answer 2

I think your best bet is etrade. On a savings account, I get 3.1% monthly.

If your thinking safe long term investment, go with a dividend paying utility company like Duke Energy (DUK) - 5% dividend yield. The only risk is that your principle will go up and down, but you're pretty much locked into that original 5%. So as long as you don't sell, and a disaster doesn't occur, you will make around 5% quarterly. As an added bonus, over the long run your principle will go up too.

If you decide a little risk is OK, try one of the better banks that pay large dividends like Capital Source (CSE) or US Bank (USB), 15% and 6% respectively. These two banks have largely avoided the housing crisis. The risk involved is that banks are exposed to the economy and may cut their dividends like Wamu and Wachovia have recently done.

Answer 3

your best bet is to go to an insurance agent. i have been writing insurance for years and i can tell you it is the best.  Ivnest your money in a mutual fund and/or annuity.  it works similar to a stock however you do not have to keep putting money in.  also unlike stocks say u want to spend $100..instead of 100 going in 1 company its split itno a few different ones for a better chance of increase..try ny life, or mutual of omaha

Answer 4

C.D's have dropped that much ????  Whew , knew the dollar was weak but.............

You HAVE to take risks to invest and make some real $$$.

I took and still take risks, some good , some bad.

Max out your 401K and roth IRA - without a doubt.

Do 50% of whats left in money markets - " Oh but Mikey they dont earn enough intrest ! " well thats my point on taking risks.

Take the other 50% and do "risk's" - high or low risk is your desicion but after a year and smart investing you may see the " light " that taking risks provides.

Im laughing at the stupidity of the everyday Joe complaining about high gas prices and living paycheck to paycheck. He cant put 2 and 2 together and realize to invest in the oil companies - why can't they see this

Another thing your not seeing is reducing your tax - Hiring a good tax advisor will pay off like you wont belive. Once the $$ starts rolling in off your investments the first person in line is Uncle Sam so get and advisor so when the time comes - Uncle Sam is nowhere to be found

Answer 5

not sure maybe europe

Answer 6

If you are willing to take somewhat of a risk, then you will be able to increase the percentage rate greatly.  Think about it.

Answer 7

Hi, Ike,

Hate to break this to you, but if you're not willing to take any risk, you're not going to make much of a return.

I think money market accounts are the best. I like them better than CDs because they're more flexible. You can write checks on them. There're no early withdrawal penalties. And you're not locked into one interest rate. They'll pay you the market rate on a continuous basis. This can and does go up and down over time, so it could be more or less than a CD you take out today.

But if you're always getting market rate, you can't ask for more, really.

You can also invest in U.S. Treasury bonds -- just go to

http://www.treasurydirect.gov

best, Rick

Answer 8

Not in financials

Fifth Third falls 10% on BMO downgrade

By Riley McDermid

Last update: 10:07 a.m. EDT June 13, 2008

NEW YORK (MarketWatch) -- Ohio bank Fifth Third Bancorp (FITB:Fifth Third Bancorp

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Last: 13.14-1.55-10.55%

10:00am 06/13/2008

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FITB 13.14, -1.55, -10.5%) fell more than 10% in early trade after an analyst for BMO Capital Markets predicted the company may cut its dividend by 50% and could need to raise new capital. Analyst Peter Winter cut his price target for the bank to $16 from $25 and downgraded it to market perform from outperform. "We believe net charge-offs will come in higher than management's forecast and more aggressive reserve building will be needed," Winter wrote in a research note. He slashed BMO's full-year earnings per share estimates for 2008 to $1.62 from $1.93 and for 2009 to $1.95 from $2.27.

Answer 9

There is a website www.bankrate.com that gives you the best list I've seen of banks and their rates on CDs, credit cards, savings and checking accounts, and more. It's free and will give you a good overview of everyone's current interest rates (and it lists them in order).