It sounds like a kind of financial self-help book for Millenials: The 90-Day Savings Account: Save Enough For Retirement in Just Three Months and Have Fun Doing It!
Actually, the ninety-day savings account is a short-term investment vehicle that kind of splits the difference between a regular checking account and other short-term savings vehicles, such as certificates of deposit. Passbook bank accounts, like checking accounts or savings accounts, don't offer much interest. Some don't offer any interest at all, or they more than cancel out any interest with offsetting fees. However, these accounts have advantages that outweigh the lack of return. You can withdraw funds as needed, keeping your assets liquid.
As an alternative landing spot for your short-time savings needs, you can put your money in investments like certificates of deposit, or CDs. These short-term vehicles offer (slightly) higher interest rates than bank accounts. However, you have to tie up your money for a certain period of time.
The ninety-day savings account provides liquidity like a passbook account. However, you typically receive a higher rate of interest compared to the nearly nothing that a common back account usually offers. It's called a ninety-day account because it exists for that length of time, locking in your interest rate. At the end of that period, you usually have the option to roll your money over into a new ninety-day account, with the interest rate resetting to whatever the new going rate is at that time.
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Finance: What is a Savings Bond?2 Views
finance a la Shmoop what is a savings bond well it's kind of like charity
charity because interest rates on savings bonds are exceptionally low even
by government standards well there was an era in America when taxpayers happily
and willingly loaned money to Uncle Sam and were happy to do so because they had
great faith and trust that the people we elected were in fact decent honest [old government photos]
hard-working representatives who had the interests of the nation placed far ahead
of their own personal gain it was the era of Jimmy Stewart and a whole bunch [photo of Jimmy Stewart]
of others you should think the greatest generation yeah we know even a pretty [picture of John Wayne]
good generation check Congress for details so savings bonds used to be a
standard birthday present for young people kind of like the cross pin that [kid's birthday party]
nice Jewish boys would get at their bar mitzvahs grandmother's after slathering [boy's mar mitzvah]
in a bathtub of angry perfume loved handing the $50 savings bond envelope to [woman in hot bath]
their college-bound progeny well savings bonds are issued by the US
Treasury and have no stated maturity date instead what happens is that the
savings bond welljust pays the interest for some
period of time like say a decade and at the end of that 10 years while it simply
stops paying interest you can cash in the bond at that time or just let it
ride essentially renting money to the Gov for free and yeah you don't want to
confuse a savings bond with this bond yeah who needs no safety
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