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

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