Financial Advice: What is the best short term investment for $1000?
I just got A little over 00 in checks and bonds from a scholarship. 0 dollars is in a check, and.0 is in I-Bonds purchased in 2001-2002. I’m going do so something 0 of that check money, and invest the rest. The 0 in bonds has accumulated an extra 0 in interest, I was told. So that plus the extra 0 in interest makes about 00 to invest.
I start college in the fall, and I need an investment that will protect all the money I have now, as well as earn interest. I need something that won’t block my access to the money for more than 5 months at least, so that I can use it in college if my money gets a little tight.
I was thinking about putting it in a MMA or a CD, because I learned in school that it was a good investment. I was also thinking about keeping the bonds, but isn’t it possible that the money I have and the interest I have will depreciate?
I’m a member of Envision CU so refer to envisioncu.com because I would prefer to do business with them.
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May 1st, 2010 at 1:05 am
A CD would be your best bet by far, except for one thing: you will have limited (if any) access to your money until the CD matures.
Usually the shortest term for a CD is 6 months, but check with your CU to see if they have any shorter. If not, try to budget so that you can keep the CD for the six months.
A distant second option is a money market account. That rate will be better than a regular savings account, but not as good as a CD. Also check with your CU about that, because often any premium rate you get there may be dependent on a minimum balance (like $1,000).
I hope that helps. Good luck!
May 1st, 2010 at 1:05 am
look cd’s pay low interest- 3 to 5 %
why not just put it in high yield savings at 5% with emigrantdirect.com, INGdirect.com, or capitalonesavings…this way you have access to the money when you need it and are making the same interest as a CD
also consider opening a scottrade account and putting it in a couple of stocks for a more risky investment- $500 opens an account- http://www.scottrade.com
May 1st, 2010 at 1:05 am
Why don’t you let envisioncu teach you about investing?
Otherwise, join http://www.martinweiss.com to learn about investing. To see if I know what I am talking about, go to any large public library and asks them behind the business section desk, if they have any current business, banking, finance reference books authored by Martin Weiss? One can look at http://www.investopedia.com to learn the terminology. If you wish to think as an entrepreneur the go see http://www.internationalsuccessgroup.com .
If you want to know what is the most successful and simpliest small business an ‘indivdual’ can get into and have a 95% success rate 10 later still…such knowledge will cost you, as this is a capitalist society.
Any person with a few extra dollars that is not buying gold and silver bullion monthly, even in small amounts is crazy! Especially as weak as the US dollar is and how bad off the present real estate market is in the US.
Go into no-load mutual funds at http://www.usfunds.com and get into the ABC type of monthly investing($30 minimum). Look at the cash fund, global resources fund and world precious minerals fund.
Finally, do not play the lotto daily, a system with a 1 in 5 million chances of winning setup. If you feel antsy and must gamble, get into a 50/50 chance or style of play. Go do http://www.hedgestreet.com almost daily, using $10 or $20 per day to take the plunge!
Lastly, anyone in today’s world that wants to become rich, no matter what the conditions are in your home country and your location has electricity and internet connections 24/7, you would be a fool of all fools not to study FOREX daily more than the christians study the bible or moslems study the koran! Surround yourself with people of like minds, waste not your time, as this world is changing quickly.
http://www.forex.com
http://www.forextv.com
http://www.fxcm.com
See when their seminars will be coming to acity near you, if not yours. Get that money girl and buy gold!
http://www.internationalliving.com
http://www.meetup.com
May 1st, 2010 at 1:05 am
Open a savings account with Emigrant Direct online. It’s currently paying 5.05% APY which is competitive with any short term Cd and beats most money markets out there. You also have great liquidity and can move transfer the money in and out of your checking account in a matter of just a few days.
May 1st, 2010 at 1:05 am
Since this is a SHORT-TERM investment (you need the money within the next 3 years), Money Market account or CDs are your best alternative.
Just remember with a CD the money is locked up for a period, so if that isn’t flexible enough for you, then stick with a money market account.
In either case shop arround for the best short term interest rates for Money markets and CD. And also look out for minimum investment for some Money Markets. That could also affect your decision.
May 1st, 2010 at 1:05 am
A few bottles of expensive champage…..followed by a night on the town. Life’s too short to invest money. Spend, spend, spend…..It’s the American way!