investing with little $

[fox_91]

I have some money in a savings account that i have had for a long time but touch rarely (altho its nice to have if needed) theres about 2k there. i would like to invest some but not all of it, because i would like to have a little spare if i need it. I would like to do somthing simple like a CD but it seems like my bank only offers CD's for 2.5k and up. is there anything safer like a CD i can get but only invest like 1k? if it helps my bank is National City

 

thanks

[annie24]

other banks have CDs with smaller minimums. that you can check out.

 

an option is also to take some of that money and put it into a Roth IRA, as a retirement account. the interest is tax-free and it's never too early to save for retirement!

[FortunateOne]

Ask your bank about the required deposit amount for a money market checking account; it's an interest earning checking. Also, check with them if they have an investment service rep for advice.

[TheRock]

You can probably check with other banks to see if they offer CD's for $1,000. 6 month to 2 year CDs are probably yielding a little over 5% now. Also, you can open up a money market account which would probably yield @ 4.5% today. Check out the orange savings account online. Also GE ofers a similar product. You also have access to you money market account more readily in a money market than in a CD.

I addition, depending on your age, you can invest that money in more risky accounts such as a mutual fund. There are plenty of options that will allow a 1,000 investment and you could add to it as well. Also a brokerage account will let ou buy something that is like a mutual fund. It is called an ETF (exchange traded fund). It is like an index fund, but better in y opinion.

Remember, you can take more risk the younger you are.

Good luck.

[NJRon]

Check out money market accounts with ING or CapitalOne. They offer rates that are pretty comparable to CDs. In addition, you have access to the money. It may take 10 days for the transaction to take effect and actually get your money, but that's good, because it also keeps you from withdrawing. There is typically no set amount to have in the account.

 

When you build up some money in the money market, start taking some out for more permanent, long-term investements.