I have $1000 that I’m not touching and isn’t increasing. I want to know where specifically I can either save this money or invest it that would make the most money for me. Which option has the highest average interest rate, and can I add more money to it as I earn more?
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Go to your local bank, they will be able to advice you on which is the best account for you to open
To be honest with you by not investing it, your $1000 is losing value. Especially in today’s economy it’s smart to at least put it into a savings account. That way you gain some sort of interest, can add money to it at anytime, and can also take out money. Me personally if I had that laying around I would try to find a high yield savings account and put 10% of each paycheck into it until it got to somewhere I felt I could get good returns by investing in either stocks or a mutual fund.
If you aren’t planning on touching it at all, there are several internet banks with very high interest rates. Also, most brick and mortar banks have risk-free CDs, though $1000 may not be enough.
If you do go the internet route, make sure the account is FDIC insured.
I subscribe to ‘WHICH’ magazine here in the, as I find it invaluable for the kind of information you are searching for.
If you go to their website and you are not a member. You can pay fee (although lots of advice is).
Have a look online or better still, get hold of one of your Sunday newspapers. They usually have all the financial advice and info.
ING Direct is a pretty neat and solid online bank that gives 3% interest on your money. Local banks won’t come close to touching that. That, or CDs at your local bank, but you can’t touch the money in a CD unless you’re willing to pay penalties for doing so.