$1,500 for savings, want to grow interest but remain liquid, what kind of account should I use?

Question

I don't know anything about CD's or Money Market or anything like that. I've got a little cash that I'd like to save, but still need immediate access to it in the next few months.

Answer 1

Get an internet savings account from your local bank or INGDirect.com. At least with ING it's tied to your checking account so accessible at any time, has no minimum balance requirement, and is easy to maintain.

Bankrate.com tracks the national rates for checking and savings interest rates. You can also see what the top interest rates are for various CD products as well.
http://www.bankrate.com/brm/rate/chk_sav_home.asp

Just remember, anything is better than earning $0/month.

Answer 2

Well you have a couple options, depending on when and how much you need access to here are some options off the top of my head. The easiest thing you can do is find a high yield savings account, I recommend ING Direct, their rate is 4.50% and they do not have any fees, and your money is FDIC insured, 4.50% isn't bad and your money can be transferred any point in time in as little as 2-5 days directly back into your checking account. The second option, depending on how long you plan on investing your money is to look into a short term CD (certificate of deposit), basically it is like a savings account but your money takes on more risk and you CANNOT touch the money until end of the term or you risk a penalty. But if you need the money say in 12 months then I would look at a 6 or 12 month CD, and the rates on CDs are usually higher then savings accounts and the longer you allow the bank to hold the CD 6 Vs.12 months, the higher rate you will get as well.

Answer 3

try a regular savings account through ING direct.

Answer 4

ask your bank about term deposit: could be for a year, but you could "close" it prematurely with no penalty.