I just turned 18 and I have about $1,000 that I would like to invest or put into some sort of savings account. What are my options with the amount of money I have? I am going to be making more money while I'm in college so I would like something that I could possibly add money into later. I dont know too much when it comes to this stuff so any advice would be appreciated!
2007-12-16 04:54:23 · 6 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
$1000 is not really enough to do too much with other than place in a CD. The problem with the CD option is that you really can not add money to it as more becomes available. The best option for that is a money market account, but the good ones have a higher minimum investment amount of $2000 to $2500. Fidelity has an excellent one with a $2500 minimum. Currently they are beyond your reach. Until that time, CDs are your best options. Put your $1000 into a 12 mo or 24 mo CD and by that time perhaps you will have reached the plateau. As you accumulate more money I believe some banks offer $500 CDs so you can buy additional CDs as you accumulate that amount. But be careful that the various CDs expire at approximately the same time.
2007-12-16 05:21:30 · answer #1 · answered by Anonymous · 0⤊ 0⤋
CDs are NEVER the best investment. You can match the return is a money market mutual fund WITHOUT locking in for a fixed term. If you won't need the money for 5 years or longer, Growth Stock mutual funds are good. If you can ignore the $1000 in a good mutual fund until retirement, it will be worth around $183,000 at age 65. If you can add $100 / month, it will be worth over $2 million.
2007-12-16 05:20:43 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
I agree, look into the many banks in your area to see what are the CD rates they offer APR not APY, there is a difference! Choose the one with the highest and the longest period. You will need to have a checking account in order to open a CD. Check to see what is the minimum amount in order to open a checking. Open it and forget it. After the allowed time your money WILL grow and your bank will ask if you want to continue with the CD or retrieve the money, again look to see the new rates and open another or continue with the one you have! By the time you get out of College you will have enough money to start you life after college or pay any loan that you may have acquired from the college, that is if you took any!
Good luck and happy investing!
2007-12-16 05:09:01 · answer #3 · answered by andres m 2 · 0⤊ 1⤋
If you can "lock up" money for an extended period, bank CDs are good. If you want an account that you can keep adding to, consider a money-market fund.
2007-12-16 05:04:18 · answer #4 · answered by Anonymous · 0⤊ 1⤋
if you are just looking to save it short term and are in your SR. year of high school a 6mo cd is best. after 6mos you can choose to use it for college or reinvest into another short term cd...
2007-12-16 04:58:57 · answer #5 · answered by The Buckeye fan 2 · 0⤊ 1⤋
go buy some booz and party man
2007-12-16 05:06:25 · answer #6 · answered by YvesT 2 · 0⤊ 2⤋