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[bgcolor=#ffffff]Credit unions, banks and other financial institutions pay interest on savings accounts. But the interest rates are low. Certificates of deposit pay higher returns. With a certificate of deposit, or CD, a person agrees not to withdraw the money for a certain period of time. This term could be anywhere from a few months to several years. Longer terms, and larger amounts, pay higher interest. People can withdraw their money early but they have to pay a penalty. Another way to save is through a money market fund. This is a kind of mutual fund. Mutual funds invest money from many people. The money is sometimes placed in short-term government securities. Money market funds, however, may not be federally guaranteed like other kinds of savings. The Federal Deposit Insurance Corporation guarantees savings up to $250,000. In a number of countries, people have been saving less over the years. The Organization for Economic Cooperation and Development is a group of 34 countries. The OECD says in 1990, Americans had a household savings rate of 7%. This year, that rate is expected to be a little more than 2%. Many European countries have higher rates, but Americans save more than families in Japan.[/bgcolor] |
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发表于 2013-10-1 18:28:55