Ken plans to begin his Ph.D. in psychology within the next few years, but he knows that he cannot count on financial aid to cover all of his graduate school expenses. For that reason, he started saving money and doing research to discover how he could earn the best interest rate on his savings.

"At first I had my money in a savings account," he says. "But then I went online and started researching the different options." When he did so, he realized that he could earn a higher interest rate and keep his risk low by moving his savings into a money market account. Today, Ken has a money market account as well as several CDs. Having these accounts reduces his temptation to spend his savings and helps him earn interest on it until he is ready to begin graduate school. "In the back of my mind, I know it's growing," he says, "which makes me feel good about the investments."

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