Savings need to remain planted in stable deposit products within strong and reliable financial institutions.

 

 

 

 

 

 

In the absence of stock market growth, core savings must do all that they can to support future financial needs.

In this uncertain economic season, some are tempted to pull up their investments by the roots to avoid potential losses. Savings, however, need to remain planted in stable deposit products within strong and reliable financial institutions. In the absence of stock market growth, core savings must do all that they can to support future financial needs.

Insured Money Market Savings Accounts
The word "market" in money market savings account is actually a misnomer. There is no market risk when a money market savings account is at a member FDIC institution, such as Nationwide Bank.

Money market savings accounts with FDIC member institutions are guaranteed by the federal government up to $250,000 per account.? These accounts pay a variable interest rate, typically higher than a normal savings account. Money market savings accounts often require a minimum deposit amount and may have a limited number of free monthly transactions — but savings dollars in these accounts are expected to be left intact if possible.

Certificates of Deposits — CD
An alternative to a money market savings account is a certificate of deposit, or CD. Also FDIC insured up to the same limits, CDs offer a fixed rate of return for a set period of time, but restrict access to the deposited funds during that time period. If you withdraw the principal in a CD prior to its maturity, you may incur early withdrawal penalties and a loss of interest. However, CDs offer guaranteed interest rates typically higher than a normal savings account and may automatically renew at a newly proposed rate at the end of their term.

Nationwide Bank
Money market savings accounts and certificates of deposit can help people grow their savings steadily, even when returns from other investments turn cold. But it’s equally important to keep your savings with institutions in which you are confident. As part of the Nationwide family of companies, Nationwide Bank benefits from Nationwide’s financial strength — more than $161 billion in statutory assets, and one of the largest insurance and financial services companies in the United States. Nationwide began its retail banking business in 2006 and built Nationwide Bank using an online, Internet-based model. Nationwide Bank is now recognized as a 4-star financial institution by Bankrate.com, whose rating signifies sound performance and stability.

Nationwide Bank offers attractive rates on money market accounts as well as CDs, with rates that often exceed the national average. The bank also recently received Bankrate.com’s Top Tier award for consistently offering Annual Percentage Yields (APYs) that were among the highest reported in 100 Highest Yields for July through September 2008.