People email me and ask all the time where they should invest their short-term cash. Because of the stock market’s shaky returns lately or even those who are saving for a goal like a down payment on a home, more people are holding cash in their investment portfolios than ever before.
That is the case for young investors too. Young investors are holding more cash than ever before in their investment portfolios instead of putting that money to work in the stock market.
So, where should you stash cash in the short term? There are several short term cash investments that you may want to consider.
High Yield Online Savings Accounts
There are many options for investors to find higher interest rates on their savings accounts online. Online banks, many of them who are strictly only available online like ING Direct, offer customers higher rates of return because their overhead costs are much lower.
Other great online banks that offer a very competitive rate of return are ING Direct’s Orange Savings Account, Ally Bank, Everbank, and PerkStreet Financial.