Best way to invest money?

I have a money market savings account. Google it.

If you don't plan on using it, and have some money socked away in an account in case of emergency, then put it in a CD.
Alternatively, you could get almost the exact same interest rate at online banks like ING. I have heard money transfers take a while, but again, so long as you have a bit of money in case you need it, you would be fine.

steamboat26 said:

If you don't plan on using it, and have some money socked away in an account in case of emergency, then put it in a CD.
Alternatively, you could get almost the exact same interest rate at online banks like ING. I have heard money transfers take a while, but again, so long as you have a bit of money in case you need it, you would be fine.

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ING is awesome. They are offering 4.5% for their online savings account. Transfers take one day but the funds will not be available for withdraw until after 5 business days. Open a minimum of $250 account and get $25 when someone refers you.

GMAC Bank has a Money Market Savings Account with an 5.30% APY. Just make sure to have over $500 in your account at all times or they will charge you a monthly maintenance fee. You're also limited to six transactions per statement cycle with no more than three transactions conducted by check, draft, or similar order to third parties.

http://www.gmacbank.com/

Why not invest in the stock market? I had 1200 in my savings back in 2003, and decided to invest. Its now just over 6000. Just research and you will be fine

Long term, Vanguard S/P 500 Index Fund

Short term, ???

$1000 bucks is a good amount of money, open an Ameritrade account and read up on everything you can find.

j/k/Andy said:

Long term, Vanguard S/P 500 Index Fund

Short term, ???

$1000 bucks is a good amount of money, open an Ameritrade account and read up on everything you can find.

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Index mutual funds with a no-load low cost company like Vanguard.

Start a Roth IRA with Vanguard. They all need a minimum of $3000 to open except for the STAR which only takes $1000.

Check out an awesome forum dedicated to Vanguard. http://www.diehards.org
where you will find it to be as helpful as macrumors.

lonegeek said:

Can somebody explain an APY rate to me?

Say its a savings account wtih 4.5 percent interest, and I have 1000 in my acccount.

Or A CD with 1000 at 5.5 percent?

And whatever else.

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APY is annual percentage yield, versus annual percentage rate. Almost all bank accounts compound the interest more than once yearly. So an (these numbers don't really work) account with a 4.5% APR compounded monthly will result in a 5.3% annual percentage yield.

Basically, if you invest $1000 into an account with a 5.3% APY you will have 1,053 on day 365.

That said, for $500 - $1000 I'd recommend an online savings account with either ING direct or HSBC direct. They both offer rates right around 5%.