Canto 2.1

Cash

This category of investments has very low risk of dropping in value, but doesn't rise much either. Because of the low risk, investments in this category don't pay much in the way of interest or dividends. In fact, sometimes a good savings account at an on-line bank will pay a higher rate of interest, so there is kind of a fuzzy line between this category of investment and your savings. Here are some of the things that fall in this category:

If you are trying to save for something that you're going to need money for in a short time - well under five years, for instance - you should mostly use cash type investments for that.


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Last Updated: 6 August 2014
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