3 Ways to Wisely Invest Small Amounts of Money

Even small amounts of money can show substantial growth when invested wisely. Small amounts of money also have the added benefit of allowing an investor to be riskier with their investments in the hopes of larger returns. There are many great ways to invest small amounts of money, especially today.

1. Penny Stocks

Penny stocks are stocks in extremely small businesses, so named because the stock prices are very cheap. Investors buy penny stocks in the hopes that the business will either grow dramatically or be purchased by another, larger corporation. Penny stocks are a challenge to an investor because the majority of small businesses will not grow, or will even go out of business. Penny stocks are a high-risk, high return, investment, which makes them perfect for investors that are looking to invest a small amount of money in hopes of a larger return.

2. Foreign Exchange

The foreign exchange market allows trades that are as low as just a few cents, and mini accounts will let traders (Read More….)

2 Things to Know About Rates for Certificate Of Deposit

Certificates of Deposits have a high rate of interest that can be earned on a monthly or annual basis than any other savings accounts. The reason for this high rate of interest lies in the fact that unlike savings accounts, where you can access the money any time you want, CDs do not allow you to access the money until its maturity.

You will have to pay a penalty if you try to touch the CD before it matures. Given below are 2 things you must know that affect rates of interest for Certificate of Deposit –

1. Term Of The CD

The most important factor because of which the rate of interest of the Certificate of Deposit varies is the term of the deposit. The longer the term of the Certificate of Deposit, the higher is the rate of interest enjoyed by you. CDs that have a long duration face the risk of inflation, and this can bring down your purchasing power.

On the other hand, the CDs with a short tenure, which have a fixed rate of interest, may prevent you from taking advantage of the increase in the market rates and you end up losing an opportunity to earn more. Certificates of Deposit usually have higher rates to cut down (Read More….)