The highest interest savings accounts are currently paying just over 5%, but the majority of bank accounts pay little or no interest. Further cuts to the official cash rate by the RBA could see deposit rates fall even further. That could make it increasingly difficult for retirees to fund their retirement, and those living off the income from bank and term deposits.

For those who are prepared to take on extra risk, but the possibility of capital growth and dividends, there are currently around 140 companies in the S&P All Ordinaries Index (Index: ^AXAO) (ASX: AXAO) that paid a dividend yield of over 5% last year, and many of them are fully franked. That's plenty of choice for investors.

Conservative investors might look towards the big four banks, plus the regional banks, Bank of Queensland (ASX: BOQ) and Bendigo and Adelaide Bank (ASX: BEN). Several utilities and A-REITs (property trusts) are also in the list, such as Envestra Limited (ASX: ENV) and Spark Infrastructure Group (ASX: SKI). Whilst those are not recommendations, and dividends can fall if companies fall on hard times, it illustrates that there are plenty of opportunities for savers to earn higher rates in the stock market.

There's also the potential for capital growth (and falls). If investors stick to quality companies with the potential to grow earnings, they should see higher returns than cash in the bank. The opportunities in the stock market also mean there's no real need to seek out hybrid or other fancy securities, which generally have little capital appreciation, and many only pay marginally above what you can get from ordinary shares.

The Foolish bottom line

While you may not have considered investing in the share market, the Motley Fool believes that it can be a profitable and rewarding endeavour, and much easier than some would have you believe.

If you only invest in one company this year, make it our "Top Stock for 2012-13". Operating in two hot markets — one set to double by 2012, the other predicted to grow 5x over the next five years — this stock is a solid growth play that also boasts strong recurring revenue, zero debt, and lots of cash. Get its name and full research case in this brand-new FREE report.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. The Motley Fool's purpose is to help the world invest, better. Take Stock is The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it's still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post RBA tells savers: Switch to shares appeared first on The Motley Fool Australia.

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Dubbed the 'Frankenstorm', a massive hurricane is rapidly descending onto the east coast of the US, resulting in mandatory evacuations of 375,000 people in low-lying areas of New York City and the shutdown of public transport, including the subway.

Grocery stores have seen people lining up to stock up on emergency supplies, like tinned food, batteries, water and candles. Drug (chemist) stores and liquor retailers are apparently doing a roaring trade.

Hurricane Sandy is expected to collide with two other cold weather systems to create a giant super storm. Waves of up to 3 metres and extremely high winds are expected.

The New York Stock Exchange (NYSE) will be closed tonight our time, and possibly tomorrow night, with the exchange stating that the safety of its employees must be its priority. All NYSE markets will be closed, including electronic trading, not just the floor trading operations. The Nasdaq stock market will also be closed on Monday.

In trading today, the All Ordinaries Index (Index: ^AXAO) (ASX: XAO) has ended fairly flat, while the S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) rose just 0.1%, but our market is likely to be without leads tomorrow, if the NYSE and Nasdaq are closed as planned.

Insurers with large US operations, such as QBE Insurance (ASX: QBE), will be closely watching the storm's progress and the damage it causes, and assessing the incoming claims. Other insurers like Insurance Australia Group (ASX: IAG) may also face some claims, as US insurers usually farm out some of their exposure to international insurance companies.

If you only invest in one company this year, make it our "Top Stock for 2012-13". Operating in two hot markets — one set to double by 2012, the other predicted to grow 5x over the next five years — this stock is a solid growth play that also boasts strong recurring revenue, zero debt, and lots of cash. Get its name and full research case in this brand-new FREE report.

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Motley Fool writer/analyst Mike King owns shares in QBE. The Motley Fool's purpose is to help the world invest, better. Take Stock is The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it's still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Hurricane closes New York Stock Exchange appeared first on The Motley Fool Australia.

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A low growth environment, with high savings rates and investors preferring the security of term deposits and shunning equities are probably the main culprits.

Adding in fears of slowing Chinese growth, the European debt crisis, falling commodities prices, structural changes to the retail and media sectors and the high Australian dollar (versus the US dollar), and it's no wonder that the last couple of years have resembled a perfect storm for Australian equities markets.

Given the ASX is dominated by resources and energy stocks, it's perhaps not surprising that many of the biggest gainers have come from those two sectors. What is surprising, is that of the ten stocks below, seven have yet to earn a profit. Investors are likely gambling on the companies producing a profit in the near future.

*Percentage increase 30/6/11 – 30/6/12. Source: Capital IQ and Google Finance

Let's take a look at the top three.

Ainsworth Game Technology

Ainsworth is a poker machine maker, started and run by ex-Aristocrat Leisure Limited (ASX: ALL) founder, Len Ainsworth. The stock has been on a tear since reporting its maiden profit in 2011, and its future prospects look bright. Trading on a prospective P/E of 8, despite the 483% rise, the company looks cheap compared to Aristocrat, which is trading on a prospective P/E of over 13.

Buru Energy

Buru made a name for itself last financial year, as it exploration program paid off with the first conventional oil find in the Canning basin of North-Western Australia since the 1980s. According to the Australian Financial Review, executive director Eric Streitberg has even mortgaged his house to put money into the company, going "all in". Buru's tenements may hold 226 trillion feet of shale gas. The company is expected to start producing positive cash flows and profits in 2013, but it's the potential value of the oil resources that have driven the price up.

Sphere Minerals

Sphere is a West African iron ore explorer, focused on Mauritania. The company received a takeover bid from mining giant, Xstrata PLC's (LON: XTA) subsidiary Sidero Pty Limited in August 2010 for $2.50 per share. A major shareholder, Singaporean based Sin-Tang developments, with 13.5% of Sphere rejected the bid, which stopped Sidero from acquiring more than 90 per cent of the company — hence the reason Sphere is still listed and trading.

Sidero raised the offer price to $3 but that has now lapsed. with Sidero owning 87.8%, Qatar Steel now holding 7.8% and Aus-Ore Investments holding 4.2% (after Sin-Tang disposed of its holdings), Sphere Minerals could be one of the most illiquid listed stocks on the ASX.

If you're in the market for some less risky, high yielding ASX shares, look no further than Secure Your Future with 3 Rock-Solid Dividend Stocks. In this free report, we've put together our best ideas for investors who are looking for solid companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry – the report is free for only a limited time.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. The Motley Fool's purpose is to help the world invest, better. Take Stock is The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it's still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 10 of the best performing ASX stocks in the last year appeared first on The Motley Fool Australia.

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• Why Ampol, Meteoric Resources, Praemium, and Treasury Wine shares are storming higher
• This ASX dividend share could deliver a return of more than 25% Macquarie says