Higher Interest for not too much risk

This is a different topic for me, to write about how to get a higher interest on your savings. I saw this in the Wall Street Journal (subscription required so can’t link the article) about corporate money markets. The article is by Terri Cullen dated September 11, 2003 “Corporate Money Markets Offer Higher Yields, and Risks”

They act like money markets provided by the banks, but they pay higher interest and usually have much lower fees. The down side is they are essentially unsecured loans to the corporations so if they go bankrupt, you lose your savings. The companies say it’s a good place to park short term cash (house down payment etc) for a few months and earn better interest.

There are 4 companies that offer the service:
General Electric
Caterpillar
Ford
General Motors

While I would have doubts about lending money to Ford or GM at this time, for short term investments (90 days or so), these could be a good deal, if you understand the risks.