Best way to invest money?

Discussion in 'Community Discussion' started by lonegeek, Aug 7, 2007.

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  1. lonegeek macrumors member


    Jan 2, 2006
    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.
  2. NotFound macrumors 6502a


    Nov 30, 2006
    I have a money market savings account. Google it.
  3. steamboat26 macrumors 65816


    May 25, 2006
    Arlington VA
    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.
  4. hanschien macrumors 6502


    Oct 2, 2006
    Houston, TX
    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.
  5. eMac4ever macrumors regular


    Nov 26, 2005
    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.
  6. lonegeek thread starter macrumors member


    Jan 2, 2006
    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.
  7. CalPoly10 macrumors regular

    Sep 5, 2006
    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
  8. j/k/Andy macrumors regular

    Jun 5, 2007
    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.
  9. achie25 macrumors 6502

    Sep 2, 2005
    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.
    where you will find it to be as helpful as macrumors. :)
  10. adk macrumors 68000


    Nov 11, 2005
    Stuck in the middle with you
    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%.
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