Take advantage of rising rates

Asian stocks fell sharply on June 7, tracking Wall Street’s weaker overnight close. Investors continued to dump equities on fears that rising inflation will eventually hurt global economic growth. However, we're seeing a lot of different investment opportunities in the market.

Below are 5 tips on how to take advantage of these opportunities.

1: Don't be asleep at the wheel

If your bank savings account isn't yielding you at least 3.5 percent on your money, you need to investigate other banks. "A lot of people don't realize that even though the interest rate is rising, banks don't automatically raise the rate on your bank account. RHB is the first bank to raise the Fixed Deposit Interest Rate up to 4%.

Besides, I heard MAA also provide FD up to 5% interest rate.

2: Hands off your 401(k)

The stock market has performed miserably recently. This week we saw the Dow test levels not seen in three months. But that doesn't mean you need to short change your stock allocation. As long as you're diversified, you should be just fine. Let market watchers and economists worry about inflation and interest rate outlook.

You should be in the stock market when it's at a depressed level, especially if you're in it long term. Investing with your emotions will hardly yield results.

3: Protect your Emergency Fund

Make sure your emergency fund is protected by investing in money market accounts. These glorified bank accounts are very attractive cash investments right now.

The best times to get into one of these accounts is when rates are rising so you can take advantage. You should think about investing in a money market especially if you are saving up for something big, like a down payment on a home within the next year.

Make sure you read the fine print. Most accounts require you have a minimum amount and there may be limitations on how many transactions you can make per month.

You may find further details from Local Banks.

4: Catch the CD fever

If you have a longer term goal that you're saving for, you may want to consider investing in Certificates of Deposit. The downside to CDs is that your money is tied up for a specific amount of time.

You may find further details from Local Banks.

5: Get into bonds

If you think the Bank Negara is done raising rates, you may want to invest in bond funds. Generally yields are about 4.5%.

A word of caution, watch out for all the fees. Expenses can mean the difference between a winner and a dud.

~ Compiled from CNNMoney.com (Five Tips by Gerri Willis)