3/20/2006

Advice from Nashville's leading Financial Aid Advisor Dave Ramsey

 
Dave Says
By Dave Ramsey
Author of:
Financial Peace and
The Total Money Makeover

"Where should I put my car savings?"

Dear Dave,

Where’s a good place to keep the money I’m saving to pay cash for a car? I have about $4,000 set aside now and was wondering if there’s anywhere you can put it that will earn a little more interest than an average savings account?

Paul via email

Dear Paul,

I’d recommend a money market account with a mutual fund company. It’s not going to earn you a whole lot more than a regular savings account, but some savings accounts are paying as little as two percent right now. In a money market account with a mutual fund company you could get maybe four percent, and when you’re saving money, every penny counts!

Never go directly to a mutual fund, though, unless you plan to leave the money alone for at least five years.

- Dave


To Find More Nashville About.com Information About Dave Ramsey Financial  Advice (including previous articles)
Click Here
To Visit Dave Ramsey.com
Click Here
To read an archive of the Dave Says columns
Click Here

*Disclaimer: Questioner's identities have not been verified by Dave Ramsey.com or Nashville About.com.