ive got $5,000 that isnt making any money in my savings account. what options do i have?

Question

I dont forsee needing it, but i want it to stay liquid

Answer 1

put it into a cd at your bank or credit union. That draws a better interest rate and you can choose how long you want your term to be varying from 3 months to 5 years. The interest rate will depend on how long you leave it in there. Dont let any people here tell you about "great opportunities" to make money online. They're full of it. There are ways to make money working online from home, but you won't get rich off them and they're hard to find. Most everything that people advertise are scams anyway. I found a site stopinternetscams .net that someone posted on here and it's pretty helpful. It tells some of the newest scams and ways to make money online that aren't fake. It's just an info site and doesn't sell anything either.

Answer 2

You can make more in a money market mutual fund. Most on these accounts allow 1 or 2 checks against the account per month. You should have about 3 to 6 months of expenses available as an emergency fund. I expect that is more than $5,000.

Brad H & Brain B: Which part of wanting to stay liquid did you miss? Retirement accounts are as far from liquid as possible.

Answer 3

It all depends on how soon you think you will need the money. If you want to use it when you retire, do an IRA. If you want to keep it locked up for a shorter amount of time so that you won't be tempted to spend it, do a CD. Some banks offer high paying internet money market accounts that pay almost as much as CDs and allow you to have access to the money. If you are willing to take on a little more risk you could always try a mutual fund.

Answer 4

You didn't mention how old you are or how much risk you are willing to take. Online savings accounts with ING Direct offer great interest rates, and the funds remain liquid. After being deposited into your account for 7 days, funds are available for withdrawal. It typically take 2 business days to transfer the money back to your checking account. You can also check "bankrate.com" to find a money market account that you can open with a minimum deposit of $5,000.

Answer 5

Just an added note to one of the responses above.....

on a Money Market you DO get three checks a month or six transfers.....

But ALSO if you do a transfer from one account to another in a branch of the financial institution, call and have them mail a check to you, or do a withdraw in person... It doesn't count for your six. ALSO it is not six automatic transfers plus the three checks... its six transfers a month and atleast three of them can be checks but no more than that..... Good Luck... And I agree with getting a money market.... or CD with a high interest..... But Money Market Accounts are liquid so that is an added benefit....

Answer 6

Open a Money Market account. Access to the money (it's liquid but with a few restrictions), higher interest rate paid quarterly. Right now our MM account is making 5.36% interest on $12,000. We can write up to three checks per month, or transfer money from account to account six times per month. It's there when you need it. We just call the bank, ask to transfer from the account, and all done.

Answer 7

You should speak to someone at your bank. If you don't need it anytime soon you could put it into a short-term CD (6 months) and make some extra $$$$ in interest.

Answer 8

ING is paying 4.5% on it's orange savings account... .normal banks can't touch that rate. And you keep it liquid just in case.

if you deposit at least $250, they will give you $25 free when you open the account. email me for info if you like.

info (AT) myscreenname...

Answer 9

my rule of thumb you should have 6 months worth of money in a liquid to cover six months of expenses in case you lose your job -- after that you should be investing in a IRA and than think of other low risk investments.

Answer 10

You should call Smith Barney tommorrow and get started in a mutual fund. Roth IRA w/regular contributions.