Savings account help!?!?!?!?!?!?
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I'm a college student also with a little bit more that 4,000 in my saving and I'm making like over $15 a month in interest. I would definitely recommend opening an ING direct savings account. If you want I can refer you and you can get a $25 bonus if you deposit more than $250. This is what I use and I make a decent amount of interest. Plus if I ever need the money is easily available. The interest rate is currently 4.5%. If you want more details either e-mail me or visit http://www.ingdirect.com
Note you need it have it linked to a checking account so you can transfer funds.
Since you will be in college I would recommend you don't put it in the stockmarket just yet. Keep it the savings for now. So if you need it, it is readily available. I hope this helps
Putting money in the stock market at that age probably isn't a good idea unless you have a full ride to college and you don't need to pay a cent of it. Stocks take a lot of time to accumulate money, and you'll need all the money you can get when you get to college.
I'd recommend a 6 months-1 year CD.
If you want my opinion, Invest in a Roth IRA start saving for retirement.
Talk to a "reputable" financial consultant.
A CD is a safe way to get about 5% interest with zero risk.
(fyi - the rule of 72: Divide 72 by your interest rate, and the result is how many years it takes to double your money. e.g., 10% interest will double your money in 7.2 years. )
Start a Roth IRA. It's the best investment to make at your age.
Benefits of having a Roth IRA :
1) Tax free growth & tax free withdrawal at retirement
2) After 5 years, the money contributed can be withdrawn with no penalties. ( Only contributions not profits made)
3) You can invest inside a Roth IRA account... stocks, bonds, mutual funds, CDs, money market, ETFs, DIA. Profits grow TAX FREE.
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