Savings Bond

Money Market Account: These accounts act like a combination of a checking and savings account. You earn interest on these accounts at a higher rate than on a standard savings account. Typically, you must maintain a minimum balance, or pay a fee if you go below it. You can write checks against the funds in this account, but there are limits as to how many.

Bond: When you buy a bond, you are lending money to a corporation or government. In return for loaning them money, you get a specified interest rate which, depending on the type of bond, is paid either at specific periods during the life of the bond or when the bond matures. These are generally long-term investments.

Executive Boardroom

Mutual Funds: A mutual fund is an investment corporation that pools together investors' money to purchase stocks and bonds. The advantage offered by this type of investment is that it is diverse and not dependent on the performance of a single stock or bond. The mutual fund itself does the diversifying for you for much less of an investment than if you were buying each stock individually. A mutual fund is managed full-time by a Fund Manager who decides which stocks to buy and sell every day. Their job is to maximize the return from your investment while maintaining an acceptable level of risk.

Stocks: By purchasing shares of a stock, you become part owner of the company. This does not mean you can walk in and use the executive washroom, though. If the company does well over time, the value of the stock should go up. If you sell the stock at that point, you'll make a profit. Some companies pay their shareholders dividends, which are percentages of their earnings. Stocks are generally a long-term investment.