Short-Term Savings Options

1) Bank savings account

  • No risk/very low return
  • No early withdrawal penalty
  • Deposits insured

2) Money market funds

  • Very low risk/low return
  • No early withdrawal penalty
  • Deposits insured

3) Certificate of Deposit (CD)

  • No risk/higher return
  • Early withdrawal penalty
  • Deposits insured

4) Short-Term Bond Fund

  • Low risk/higher return
  • No early withdrawal penalty
  • Deposits not insured

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