Savings question?

I have some money in mutual funds. I have some money in the money market account and I get money deducted monthly for my Roth account. Should I have a separate savings account or just put all extra money to save into my mutual funds? Thank you.

I have HSBC Direct's online savings and it's paying me 5.05% APY interest. Now they have a promo at 6%.
You can link the online account to the local bank's checking account.
That way, you can deposit money at the branch and transfer it over to get the higher rate.
Bankrate.com has rates of top companies.
I prefer HSBC.
If your money market account is getting a good rate, keep it.
Otherwise, move it to HSBC, it's also FDIC.

The mutual fund would be the best especially if you don't need the money as the returns on that would far exceed that of a savings account.

It's always a good idea to have your investments diversified, so if one takes a hit, it doesn't wipe you out completely. The Roth allows you to put money in and let it grow tax free. Mutual funds are good for extra money that is beyond IRA limits to grow as aggressively as you are comfortable with. The money market is better than a regular savings, and the money is easy to get without extra fees of selling the funds if you need emergency cash in a hurry.

I agree with Brian G.

Having said that, I still keep a minimal amount in savings as well as Money Markets. I do this as I am more likely to make a big ticket purchase by drawing from my MM accounts. I leave my savings alone...its my rainy day cash (4 months complete living expenses there).

Unless you are investing in no-load mutual funds both front-end and back-end you are making a SERIOUS MISTAKE by investing in mutual funds.

Your best bet is to put your extra money in a savings account. Also go to www.fidelity.com and open an online account. Whenever, your savings reach $2,500 transfer it to the online account and buy shares in the S&P 500 ETF, the stock symbol is SPY. This is the Standard and Poors 500 Stock Market Index ETF with average annual expected return over the long run of 10-12% annually.

Tags

　　Online Investment 　　Online Business 　　Offshore Investment 　　Mutual Fund 　　Money Market Funds 　　Money Investment 　　Managed Fund 　　Make Money 　　Low Risk Investment

Related information

What's the best type of savings account?

What I recently discovered an an Insured Money Management Account also known as IMMA. Some financial institutions offer then while some do not. The one I found offers a much higher interest rate ...

What is the liklihood of a stock market crash similar to the one that cause the Great Depression?

Does the dog wag the tail or the tail wag the dog. If the overall economy goes into a depression/recession than we could have a large market crash. We could also have a market crash due to fear, ...

Any course is offered (which relate to finance)duration to be atleast 4 6 mths.?

For complete details on the programme please visit the following link:...

Is the US bond market similar to a company's bond or share market?

Sort of a long winded question. There is a slight difference. China and Japan and the oil exporters are the main purchasers of U S bonds. They buy them because the alternative is too frighte...

I have an invention that I would like to market, I need funding and I have bad credit, the invention will sell

A manufacturer? There are many rip off places that charge you to market your invention, they will make any invention for a price, it does not matter if it is marketable. Be careful. Contac...

Where should I put my money? this is what I found...?

For the time being you should first make sure you have enough money in a regular savings or checking account to serve as a safety net in case you have some sort of emergency. If you can keep at lea...

Annuity? Why not?

If you're a soon to be retiree and you're looking to lock in a stream of income with next to no risk, a fixed annuity is the right answer. People automatically think of variable annuit...

Does someone want to help me get some financial assistance to get my invention to market?

You may want to go and pitch your ideas where investors gather. But be prepared to answer the questions a potential investor will ask you -- e.g. do you have patents, market potential, etc. Here...