Risk VS. Return Meter

Making Your Money Grow

There are an almost infinite number of ways to help your money build on itself. A few are presented here, ranging from the safest to the riskiest. Keep in mind that, in return for a secure investment, you're going to have to sacrifice something, usually a lower rate of interest or decreased access to your money.

Savings Accounts: A deposit account that is offered by banks and credit unions. The bank lends your money to other people who need loans. In return for using your money, the bank pays you interest, though at a relatively low rate - usually less than 2%. You do have full access to your money and may withdraw it at any time.

Certificate of Deposit (CD): A special type of deposit account that pays a higher rate of interest than a regular savings account. The reason you're paid a higher amount is that you agree not to access the money for a specific amount of time, such as 3 months, 6 months, 1 year, and so on. If you do withdraw the money, you will pay a penalty.