Are there other ways to Invest Money?

Besides traditional savings and certificates of deposit, there are other ways to save and invest your money. Two other types of FDIC insured savings deposit accounts you can invest in at a bank are a Money Market account and an Individual Retirement Account.

A Money Market account is like having a savings account and a checking account all in one. It earns interest like a savings account, and you can write checks like a checking account. However, you are limited to how many checks you can write, often only three per month.

An Individual Retirement Account (IRA) is an account that helps you save for your retirement. The government does not tax the interest you earn on an IRA until you take the money out. But you cannot take the money out whenever you want. It has to be for one of several very specific reasons or when you are 59 ½ years old.

There are other types of investments you can make too, however, these other investments are not FDIC insured. Because they are not insured, they are considered riskier investments, but they often have higher interest rates. These types of investments include mutual funds, stocks and bonds, and annuities.