I have 6k sitting in the bank for a while. Any advice on where and how to invest my money?
I’d recommend an index ETF like SPY or SPLG for long-term growth. It’s a set-and-forget solution with small dividends.
A lot of online-only banks have cash management accounts that offer over 5% APY, which beats most CDs right now. I just opened an account with Moomoo that has an 8.1% APY for the first three months, plus they give you a few free shares of a random stock. The stock is like a lottery; most likely, you’ll get something worth around $10 per share, but there’s a small chance of getting something more valuable. Do your own research, though… Moomoo looks a bit sketchy, but it is FDIC insured.
I did something similar with Wealthfront. They had a promo with a higher interest rate for the first few months. I’ve just been opening new accounts whenever I see a deal like that. Some banks will give you around $200 for depositing a certain amount. Turns out, people call this churning, and there’s a lot of information online about it.
Also, many online banks offer referral links where the person who refers you can get about $100. This might bias the reviews online since they’re all referral links. But it’s fine to let someone earn a little extra if you go that route.
Mal said:
Bitcoin
Based. Hodl!
If this savings is for a short-term goal (less than 5 years), you don’t want to risk it in the market. Put it in a high-yield savings account, CD (maybe a ladder), or Treasury Bills. Zero risk, guaranteed returns.
If it’s long-term (10+ years), put it in the market. Index fund ETFs are a good option. Set it and forget it.
Stock market if you know how, or mutual funds if you don’t
Done-for-you affiliate products! Message me if you’re interested
I invest in crypto and index funds and both have done very well. What works for you depends on your goals, risk tolerance, and how long you want to invest.
In a savings account that pays interest
Riskier options: TSLA, META, AAPL. Slow and steady: SPY.
Any funds with compounding interest are much better than fixed deposits. It depends on which country you’re in. Singapore has CPF, Malaysia has EPF, so it depends.
Joss said:
Any funds with compounding interest are much better than fixed deposits. It depends on which country you’re in. Singapore has CPF, Malaysia has EPF, so it depends.
USA
Stocks. RYCEY or SAVE but do your homework before investing.
Denver said:
Stocks. RYCEY or SAVE but do your homework before investing.
What app do you use for stocks? Is it limited to a certain country?
With $6k, start by ensuring you have an emergency fund of 3-6 months of expenses in a high-yield savings account like those offered by Ally or Marcus, which typically yield around 4-5%. Once that’s set, consider opening a Roth IRA through a brokerage like Vanguard or Fidelity, where you can invest in a low-cost index fund like the Vanguard Total Stock Market Index Fund (VTSAX) or the Fidelity 500 Index Fund (FXAIX) for long-term growth. If you prefer more immediate access to your money, look into a robo-advisor like Betterment or Wealthfront, which can create a diversified portfolio based on your risk tolerance and financial goals. Lastly, remember the benefits of dollar-cost averaging by contributing a portion of your investment each month to help reduce the effects of market volatility.