Banks give very low percentages so I’m not interested there, unless I can’t find something better.
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Thinking of investing your savings?
While increasing your savings is good, multiplying your money through smart investments feels great - there are lots of opportunities out there and you can be successful if you're arming yourself with the right information.
Where to start?
If you're going to try your luck on the stock market or trading options, first start by learning the basics and delay as much as possible buying real positions. One way of getting hands-on experience with the markets is through online trading - either forex or binary options are good learning grounds and most online brokers offer trial accounts free of charge (if you're wondering what are binary options, 24option.com has very good resources on it, besides offering a free practice account and a wealth of information about binary trading in general). Final warning for the very eager: binary options are exotic financial instruments; real trading involves substantial risk of monetary loss.
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Assuming these are savings that your grandsons dont plan on touching for a long time, then it is probably best that you invest in stocks. Investing in bonds is likely way too conservative.
If you live in the US, there is something called the Uniform Gift to Minors Act. This is bascially like setting up a trust fund except the amount of money dealt with is much smaller and there are no lawyers or other hoopla involved. It is basically just filling out a form and mailing it in to your broker. That’s it.
Minors are generally prohibited from owning stocks so this Act provides a runaround. You set up an account. You manage it. You make all the decisions. But the money is not yours; it’s the child’s. There are also tax benefits for you and the child.
Possibly the one major drawback is that once the child turns a certain age and the money becomes his, he can do whatever he wants with it. So if you anticipated that he would use the money to say go to college, he could conceivably blow all the money on a week in Vegas and you could not do anything about it. It’s his money not yours.
You might consider opening one of these accounts, investing in something like a stock market index fund and just letting it grow for the next 20 years until your grandkids need it. It’s a great way to help save for your grandkids!
The below website has more info.
Try getting bonds, or investing in the stock market.
Believe it or not try your insurance agent, if you have one of the big companies, like Allstate or State Farm you can get better rates on their savings products which are typically better than banks (not necessarily better than credit unions though). http://www.AllstateBank.com Allstate has a savings account giving 4.25 % currently.
Try your local credit union.
They have different types of accounts that will give you short and long term savings.
Have you consider insurance? It’s also a source of savings and with higher interest returns versus banks.
I know a company currently offering 25% annually.
ING Direct Orange Savings account if offering 4.50% APY .
Savings Bonds are hisorically very steady – and sure and steady wins the race.
Check out Savings and Loans – some of them can give slightly higher rates.
Peace.