Invest Reverse Mortgage Proceeds in Savings Accounts
Make your reverse mortgage work for you as beef up your savings. A reverse mortgage will allow you to tap the equity in your home to use however you see fit. Why not use the funds to invest in one of the following types of low-risk accounts:
—If you don’t want anything fancy, you can always park the proceeds from your reverse mortgage in a regular savings account, which is FDIC insured up to $250,000. Savings accounts are ideal for funds that you may need to get your hands on quickly. Interest rates on savings accounts won’t knock your socks off, but at least you won’t lose sleep at night worrying about that money being gambled away in the stock market. whether you’re comfortable doing your banking by the World Wide Web, consider a high yield savings detail that may offer a better interest rate.
—Money market accounts usually have a higher rate of interest than regular savings accounts. They additionally may have a minimum balance requirement (often $1,000) and
—Certificates of deposit (CDs) can be purchased for a period of only a few months or several years. Individual banks set their own CD rates and update them daily. assemble certain you won’t need your money during the term of the CD or you’ll be hit with penalties for cashing out early. You can additionally put your money in more than one CD to take advantage of the best CD rates and stretch out maturity dates. CDs plus are FDIC insured.
You can find current interest rates on CDs, money market accounts, and regular savings accounts at MoneyRates. Online banks often have higher interest rates considering they have fewer costs associated with doing business. You plus may be able to qualify for better rates whether you have several accounts at the same bank.
Orginal post by Francine Huff
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