You have just graduated from college and have started a career with an excellent paying job. now, you would like to save to buy a house within 5-7 years. The type of savings vehicle that should be used is mutual funds.
Some important type of savings vehicle are-
1. Savings account- The money here is insured by the federal deposit insurance corporation up to a certain limit.
2. High yield saving accounts- It is a type of savings account complete with FDIC and higher interest rates than saving accounts.
3. Certification of deposit- They are also FDIC insured, and offer higher interest rates with larger and longer deposits.
4. Money market funds- It is a mutual fund that invests in low risk securities.
5. Bonds- It is low risk debt investment.
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