I have a marcus savings account that returns at 1.5%
I've recently been thinking about government bonds. From reading, I know that bonds are essentially loans that you can buy and get paid the principal + interest over time. I heard that they can return at rates >= 5%
With that in mind, are there any advantages to having a savings account like Marcus vs just putting all of that in government bonds because of the higher return ? Maybe despite the savings account return being lower it compounds
When I think about the risk, when it comes to a loan, the risk is that the other party wont pay you back. But if the other party is the U.S government, you dont have that risk?
Can someone give a simple explanation/example for this that can help me understand? I think I might be missing something
Submitted August 13, 2022 at 05:44AM by Truetree9999 https://ift.tt/RPcj0WV
