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TwstdSista t1_je9c567 wrote

Not really. Your can get 4% ish in a high yield savings account, money market fund, CD or even T bills.

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nonearound OP t1_je9cetv wrote

So I'm not sure if my understanding of how this works is right. Say I put 10$ in an account with a 4% yield does that ill get 40 cent return on that investment?

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TwstdSista t1_je9cwkg wrote

Annualized - yes. Which means 40 cents over the course of 1 year, or 3 cents per month. On $10k that would be $33.33 per month. While $10k at 0.90% would be $7.50 per month.

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nonearound OP t1_je9tdii wrote

That still seems kinda low to me, no? Is there another type of savings account that could yield more results?

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TwstdSista t1_je9tvjm wrote

There are some 5% CDs out there. And money market funds are yielding around 4.5%. I'm not sure how much T bills are earning these days, but it's probably right in between. I don't think you can get a better rate on cash right now (in the US).

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antialiasedpixel t1_jeaareq wrote

That’s the whole “takes money to make money” concept. It’s a snowball where it goes really slow at first, but as you build up more and more the interest/growth really takes off. Generally cash savings/CDs are not going to make you a lot as they are very safe. Stocks can make more, but even then, on average take about 7 years to double your money. So 10k would be $20k if you put in no extra after around 7 years.

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burner46 t1_jeamdhp wrote

What do you think is a reasonable rate of return for a no risk investment?

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