Okay so I am ready to save! I have about $10,000 just sitting in a checking account and I have no idea the best place to put it. I know that I will be wanting to access it in about a year and a half but untill then I will be adding to it continually. Where should I put it to get the best interest rate?
2007-03-06 08:11:47 · 5 answers · asked by Emilee H 2 in Business & Finance ➔ Personal Finance
If you need the money in 18 months, a money market is a low interest (but still more than checking) way to go. It's easy to add to.
A CD pays slightly more, but you cannot usually add to it.
If you're willing to have some risk, $10,000 is a nice amount to buy a mutual fund. Find one that matches your risk tolerance. You can usually add funds as you have them.
2007-03-06 08:15:46 · answer #1 · answered by Jay 7 · 1⤊ 0⤋
first, get it out of your checking account. Anything but a checking account earning (maybe) 3 %. Where you put it will also be determined by how much risk you want to endure.
A CD is a safe bet. Some banks give up to 6% for about a year. Putting that 10,000 in a CD for a year will allow you a safe bet. As you want, you can open smaller CDs as you continue to save.
If you want a possible bigger payday, look to mutal funds with a financial planner. There is bigger risk for losing. But over a year, you could earn about 10-15% in a good fund.
If you can, find a piece of land to buy. An empty lot is a safe investment, and depending on your location in the world, could be a great investment.
Do not buy a car, motorcylce or something that will reduce in value.
2007-03-06 16:23:38 · answer #2 · answered by j s 4 · 0⤊ 0⤋
If you know you need it in 18 months, and you can't risk the possibility that it might only be $8,000 at that point, then put it in either a High-yield savings account (such as INGDirect.com), or buy a CD (Certificate of Deposit) from your bank.
2007-03-06 16:18:17 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Right now I'd recommend http://www.HSBCDirect.com which is paying 6% interest on new account through April 31st (after which the money will pay 5.05% - I think).
You may also want to consider a Money Market Account - http://www.bankrate.com will give you a list of the highest paying.
2007-03-06 16:18:19 · answer #4 · answered by fdbryant3 1 · 0⤊ 1⤋
Check out daveramsey.com
There are some good ideas on how to acheive financial peace.
2007-03-06 16:18:58 · answer #5 · answered by grantwiscour 4 · 0⤊ 0⤋