Certificate deposit

It is the best and most low risk way of investing money, you get returns time to time but there are a few things you should be aware of while taking certificate deposit. In a CD you put money for certain amount of time that is called the maturity period if you take out money before this period you will have to face penalties. You get interest on this money quarterly and the maturity period can vary from 1 to 5 years. Also you should take the certificate of certificate deposit as a proof and check the bank as well. The deposit can have a fixed or variable interest rate depending on the contract so make sure to read all documents carefully before making the investment.

Money market account:

If you have in mind to maximize your money market account is the way, this investment if done properly will give huge benefits. But be clear about the fact that this differs from money market funds, knowing the difference is important. Money market basically stands for a market where bank, business men and others trade and a money market account is a kind of savings account that yields high interest. While on the other hand money market funds deal with stocks it’s not a premium savings account.

For opening such an account visit your nearest branch of your bank, what the bank does is it invests your money into certificate deposit’s or treasure deposit’s which are low risk investments, so you get high interest rates for letting the bank invest your money. But make sure your bank is Federal Deposit Insurance Corporation (FDIC) approved otherwise if your bank goes bankrupt you lose all your money. Also know all the account details like the minimum balance to be maintained and the amount that can be withdrawn is you don’t follow the guidelines penalties can be applied on you.

Forex trading

Forex stands for foreign exchange trading; it means the trading in different currencies belonging to different countries of the world. The trader obtains liquidity due to this large market. This market is responsible for the flow of $1.5 trillion on a daily basis which is huge compared to the New York stock exchange. In this market the trades are done within two banking days and all the trades are done by electronic means. The people who practically earn the max in these trades are banks, hedge funds and financial organizations. Since the introduction of a new set of rules and the ease to access over internet anybody can trade currencies. The currencies that rule this market are us dollar, Japanese yen, Australian dollar, Canadian dollar, British pound, and euro. Most popular pair of trading are us dollar against the yen (usd/jpy),euro against us dollar etc. When we quote currency pair the first is called the base while the latter is called the quote. The best thing about trading currencies is you can earn profits easily as market goes up and down. But you should always avoid trading money that can make you end up in crisis. Try to come up with a trading plan before entering the market