5K to invest

[dynacraze]

I read somewhere that the worst thing you can do with money is let it stay there b/c you lose because of inflation. Does anyone know whats the best thing to do with 5k? 6 month CD was an option i checked but that will probably make me only 100 dollars though i wished i done that a year ago so I would have made an easy 200 dollars since i haven't touched this money at all.

[Fishhead24]

Countrywide Financial

5.25% SAVINGS account

This is a very well respected company and no fly by night operation.

[jason6633]

ING Direct has a orange savings account at 4.5% as well, http://www.ing-usa.com/us/individual...king/index.htm

[prohornblower]

$4K into a Roth IRA

[jesse8888]

I advocate using Etrade for all your banking/investment needs. The savings rate is 5.05%, they are currently offering 5.36% on three month CDs, you can open a Roth IRA and of course there are the 7000+ mutual funds you can buy (not to mention individual stocks). Transfers from one account to another (I must have 8 or so) are instant, free, and unlimited.

My suggestion is to Open an Etrade savings account, transfer the money in there electronically so it starts earning the 5.05%, then figure out how to proceed from there (likely by opening a roth and buying a couple of index funds).

[RikaKazak]

put it into a savings account (ing/hsbc/etc.) so if someone does happen and you need the money it's there/easy to access.

Also the ~5.25% is a nice bonus.

[dynacraze]

how long do i have to have my money in the hsbc account for the 5.25 percent?

[godofgamblers]

It's 5.05% now and you get it from the time your money hits the account. It pays monthly based on average daily balance.

[dynacraze]

oh okay thanks. So if i have 4K there one month it pays based on that amount but if i have 2K my interest would basically be half of that?

[captZEEbo]

[ QUOTE ]
oh okay thanks. So if i have 4K there one month it pays based on that amount but if i have 2K my interest would basically be half of that?

[/ QUOTE ]pretty much yeah. At the very least you want your money parked in a high yield savings account, money market account or bond funds. Never leave temporary savings in a low yield account if you can avoid it. I have money parked at hsbc for 5.05%, and they have a free checking account bill pay and standard nice features. I also have some in a fidelity brokerage money market account waiting to invest into stocks. But you can do billpay right out of fidelity and also buy into fidelity funds.

I'm not sure what you need to use the money for or when you need to use it by, but I'd highly recommend an ira of some sort (preferably in a roth ira). One of the benefits of a roth ira is that you can use the first 10k towards the purchase of your first home. It also grows tax free which is a huge benefit that most people don't realize how great is.