Best way to invest money?

[lonegeek]

So, I figured this forum would be a good place to ask.

I'm 16, and I have some where between 500-1000 dollars to put away to save.

What would be my best option?

Savings account, CD?

I don't think I have enough to be taken seriously enough by any sort of brokerage to invest in any sort of mutual fund or index fund, or whatever else.

Any ideas?

Thanks, zach.

[NotFound]

I have a money market savings account. Google it.

[steamboat26]

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.

[hanschien]

Originally Posted by steamboat26

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.

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.

[eMac4ever]

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/

[lonegeek]

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.

[CalPoly10]

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

[j/k/Andy]

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.

[achie25]

Originally Posted by j/k/Andy

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.

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. www.diehards.org
where you will find it to be as helpful as macrumors.

[adk]

Originally Posted by lonegeek

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.

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%.