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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77396  
Subject: Re: CDs Date: 7/19/2000 7:25 AM
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Greetings, Jdlmary, and welcome. You asked:

<<I've been putting some money in CDs because of the low risk, but 6% seems like a low rate of return. What other investments have low risk but a better bang for the buck. >>

It depends on what you mean by "low risk." You can get a slightly better rate of return sans a guarantee on the principal by using U.S. Treasury securities like T-Bills and Notes. You could also look at short- to intermediate-term corporate, municipal or U.S. bonds. Those instruments would provide relatively stable investments at a slightly higher rate of return than many CDs.

Keep in mind that potential return and risk go hand in hand. The higher the possible return, the greater the risk. Nothing in life is free. Therefore, if you wish to better your return, be prepared to assume more risk as well.

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