Where's the best place to put my savings?

Question

Savings accounts earn a paltry 0.25% and CDs aren't much better. Any ideas on where I should start tucking my money away?

Answer 1

I do have a couple of suggestions.

1) If you are under 30 start tucking your money into a large cap ETF that pays interest. Example: Stock symbol DVY.

2) if you want even less risk, go to yahoo, search for INGdirect. Online saving accounts, pays 4.50% interest, covered by the federal insurance depository.

Answer 2

check out INGdirect.com or EmigrantDirect.com. They both give you a guaranteed interest rate of around 5%.

But you need a checking account at your local bank so that you can transfer money. So open a checking account first at your local bank. Then go online the next day and go to one of those websites I mention.

But if you are saving for a long term such as for buying a home, a wedding, or for retirement, you need to invest your money. Investing is the only way to build wealth. Mutual funds, which invests in 25-300 companies, have historically earn an average rate of return of 12% in the past 25 years. If you invest $100/month into a tax-deferred account such as IRAs for the next 25 years, you will have: $189,760.

What I suggest: Open a checking account (if you don't have one already), open an online savings account, and if you are currently working, open a Roth IRA and invest monthly. You have to be legally earning income in order to open an IRA account.

Answer 3

Have you heard of ING direct? They're paying over 4% for regular savings and at least 5% for CDs, with no minimum balance. FDIC insured. Open an account online today and you'll be able to log in anytime and watch interest accumulate before your eyes.