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Money Q&A: Better Options For Your Savings?

Q.

Which is a better option for our savings: an ING savings account or a mutual fund?

A.

A savings account at ING will keep your money safe and secure, and those are words you can bank on. For savings accounts, ING will pay a variable interest rate on your money that is currently 4.1 percent—down from its one-time high of 5 percent. Through ING, you can also buy mutual funds as well as other banking products, but those investments aren’t insured.

Mutual funds, meanwhile, have posted some pretty impressive returns over the years, usually higher than those of most savings accounts, because mutual funds are made up of stocks that are chosen and managed by a market professional. In general, the stock market provides annual returns between 8 and 12 percent. Some highly rated mutual funds even exceeded that range. But with reward comes risk, so do a bunch of research before taking the plunge.

-- The Nest Editors

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