Savings Accounts

At a time when the high prices of food and energy are increasing the cost of living, investors who prefer the safest vehicles for their savings face a dilemma: saving options such as short-term certificates of deposit and money market Money offer dividends below the inflation rate.
 The consumer price index for May was a 4.2% higher than a year ago, according to the government recently announced.  By contrast, on average, the gain on a CD to six months is only 1.93% and a money market fund subject to tax is 1.87%, according to Bankrate.com and iMoneyNet (both available in English only).
 Anyway, investors have yet simple options to improve their earnings, look like CDs and money funds with higher dividends and, in some cases, opt for cash funds exempt from taxation.
 Benefit CD
 The comparison is key to getting the best returns of CDs.  Some banks smaller or lesser known gains more attractive offer to compete with major banks.
 Although investors may be wary of lesser known players, while CDs have a federal insurance, the risk is minimal.
 Money Funds
 If you want to increase their earnings into a fund of money can change a fund to deduct expenses on the less interest they get from their portfolio of debt instruments in the short term.  Among the funds of lower costs there are some that require large sums for minimum investment or limiting the possibility of issuing cheques, says John Bacci, financial planner Maryland.
 Another option is to switch to a fund that buys tax-exempt state and municipal debt in the short term.  The interest from municipal bonds do not pay taxes at the federal level and usually not taxed residents of the same state.
 The fund money that does not pay taxes on average yields a gain of 1.2%, according to iMoneyNet.  For an investor who pays federal taxes high and resides in a state with high taxes, that could be more profitable than owning a fund of money subject to pay those taxes and income taxes.
 Protection against inflation
 Investors who worry that inflation rises further, they also have the option to buy two types of government bonds designed to provide protection against this situation: I Bonds, a class of savings bonds and Treasury securities Protected against Inflation, or TIPS by its acronym in English.  The disadvantage is that at the moment neither offers investors a good profit after deducting the inflation rate.
 In fact, those who buy bonds at the present time I get a fluctuating gain, which depends on the increase in the CPI and does not give dividends beyond that.
 The savers can I buy bonds on the website TreasuryDirect.com (available in English only), through banks or through discounts in their salary.  One drawback: investors have a purchase limit of $ 5000 per year in bonds online and $ 5000 in bonds in paper form.
 The 10-year TIPS currently offer gains of approximately 1.7%, plus the promise that the bonds will increase capital at the same rate as inflation.  That figure is lower than in previous years.
 One risk: the price of TIPS can be downloaded, like other bonds, if interest rates rise in the market.
 Other options
 Investors who are willing to take certain risks in changing prices may also consider a variety of other bonds and bond funds.  It should be noted that the volatility in bond prices generally increases with the amount of years old bond.
 One option which presents a relatively low risk fund is a short-term bonds.