Make your cash work more for you

Many people keep their cash in a checking or savings account at a bank.  In most cases, the annual interest rates (if any) for these accounts are very small – often under 1%.  Even with larger balances, the rates are usually meager.  Bank money market accounts offer higher yields, but usually require large minimum balances.

Consider putting your excess cash in a money market mutual fund.  These funds offer safety and easy access to your money with yields that are often noticeably higher than bank accounts.  While these funds are not FDIC insured, no consumer has ever lost money in one of them.  When choosing, select a fund with no sales charge and a low expense ratio.