I have $1000 dollars and not sure what to do w/ it? like to put it in savings, or CD?

Question

I like to make more money with it . Can I put it in a high yield saving acccount or a money market savings account or a CD deposit acct ? I want to make it grow to more money. Which is the best way to go on this? However, I also want to be able to get into my account at anytime or make withdraws anytime. And how does it works with CD's and the money market deposit ?

Answer 1

Bank of America has a "no risk" CD.
You deposit the money and can withdraw at any time no penalty. It pays a lower APR.
You cant use like a checking acct. However, I put 10,000 in it for 9 month CD. After 5 months I withdrew and took out a higher paying CD at the same bank.
Currently I am in a 91 day CD at 5.25 Percent which will earn me 210 dollars in 91 days. Roughly about 2 dollars a day

Answer 2

There are pros and cons to both, and maybe a couple more options than you have listed.

1) Savings account. Generally low interest rate, low enough to question whether or not you are actually using your money to make money. On the plus it is very liquid (liquidity of money is how easily your investment can be turned into cash). You can withdraw from a savings account whenever you like.

2) A Certificate of Deposit. Higher interest than a savings account, but, as mentioned previously the money is locked. You will go into a bank and review their plans. Many will be out of your range, $5000 is a more standard starter amount. But you will have a few options to consider. Shop around like you are buying a $1000 TV, take it seriously. You will find many extra options available, like interest paid into a savings account, etc. You CAN take the money if you have an emergency, but you will get a penalty that would probably dip into the principle. Also, if you are young and building credit, you can take you secured loans against it in other to cover you emergency, if you will have money to pay back the loan.

3) Money Market Savings Account. I don't know if this will be an option with $1000, but many banks are now offering this modified savings account. It is very liquid, but offers higher interest if a minimum balance is kept.

4) Online stock trading. Very risky, as opposed to all these other options which would be considered very secure. You can, depending on the site, change investsments quickly and easily, usually with a charge. Shop around for this option the same way. Not very liquid.

5) Government Bond. Very secure, very low interest, only for if you want this money when you retire. Not very liquid.

Finally, do not listen to the person telling you to buy stuff. Obviously someone who doesn't understand your priority.

Answer 3

ING has a high yield savings account that is FDIC insured and you can get your money whenever you need.

CDs typically don't allow you to access the money until the CD matures, so it's not a great place to put money when you might need to get to it before the term of the CD. Besides, the difference between the interest earned on $1000 in a CD and a high yield savings account is not worth having your money locked up in a CD, in my opinion.

Also, you can usually find an ING referral online and get a free $25 for opening an account.

George.
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http://onlinemoneyfinance.blogspot.com/2007/12/ing-direct-orange-savings-referral.html

Answer 4

If you want access at anytime you need a high yield savings or a money market account. A CD will be locked it for whatever term you buy at and taking it out early involves paying a penalty

Answer 5

CD's generally pay more interest, but you can't access the cash for a set amount of time, although you can pull it early, but you just won't get the promised interest rate when you pull early.

Savings will have a lower interest rate, but can' be access anytime.

Also, you need to keep in mind that you will have to claim your interest made during that year to the IRS, but $1000 isn't going to make you go into a higher tax bracket (maybe lol) so no real worries there.

Answer 6

If in a savings account....you can access it when you want.
If in a CD...for a "term you choose" you will be penalized for withdrawing any amount before the "term" is up.
I think Money Markets are like CD's....penalized if you withdraw before the time is up.

Answer 7

Etrade has a savings account with 5%. That would be a good idea, or investing it in a low risk stock may pay off. Since tax season is coming up, invest in H&R block or something like that.

Answer 8

yOU CAN GIVE THE CASH TO ME OR BUY ME A NEW COMPUTER OR GET A PS3 OR WII OR 360 OR GET A NICE TV GET A BIGGER AHRD DRIVE,BUY BETTER COMPUTER COMPONENTS. or buy clothes and shoes.

Answer 9

GIVE IT TO ME! I'LL WAST IT FOR YOU!