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06-17-2008, 06:28 AM
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$ Saving Second Grader
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Join Date: Jun 2007
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Best way to make 7,000 Grow
Hi,
I am going to be a senior in college starting in the fall and this summer I will be making about 11 thousand at an internship. When all is said and done (after insurance, birthdays, credit bills (which i always pay in full)) I will have about 7 thousand dollars remaining (just over that). Now I will still make some money during the school year from tutoring so I can get by without the 7 thousand. So the idea I had was to hopefully put it somewhere to save for when I graduate in May and need to start saving for the day I move out. Where is the best place for me to put this 7,000 that it will grow the most in a year?
Thanks,
Michael
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06-17-2008, 07:22 AM
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$ Saving Second Grader
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Join Date: Jun 2008
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When do you think you will need the 7000? One option might be to open a Roth IRA and partially or fully fund it for 2008 and leave the balance in a savings account for more short-term use.
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06-17-2008, 07:23 AM
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$ Saving Second Grader
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I will probably need the money around fall of 2009
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06-17-2008, 08:19 AM
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$ Saving Second Grader
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Then I would definatly just go with online savings. HSBC is offering 3.5% right now. I might not even lock into a CD b/c rates are low, so if you do want to put a portion into CD's possible a 3 or 6 month CD. PS Must be a good internship to be making 11k! I will be a sr in the fall too, but am not makign that much!
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06-17-2008, 08:47 AM
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$ Saving Jr. College Student
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I agree with the other posters. Although I would consider opening up a Roth IRA with some of the money, just to get one started. Good job on being smart and setting this money aside!
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06-17-2008, 10:11 AM
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$ Saving Assistant Professor
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savings accounts or CDs. Possibly consider some inflation bonds at treasury direct.com, but I think your 1 year duration is not what would return best at treasurydirect.
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06-17-2008, 11:05 AM
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$ Saving HS Freshman
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Join Date: Apr 2008
Location: Laona, WI
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You could always invest in melange. =) j/k
I think the CD's would be the way to go, but I would head to bankrate.com and look for the best value and it might not be that the best interest rates are at the year mark, look at the 6-9 month rates.
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06-17-2008, 11:23 AM
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$ Saving Jr. High Schooler
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If you're positive you won't need 5k of that money, stick it in an i bond. It's pumping out 4.84%. After october it will change though. I heard it will go up.
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06-17-2008, 12:25 PM
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$ Saving Second Grader
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Quote:
Originally Posted by cooliemae
You could always invest in melange. =) j/k
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Haha! I am always happy to hear other Dune readers! I wish I COULD invest in it, but I think everyone already would have.
I think I will check out that site, and I should probbaly check out bonds too, but I thought I've heard that, they can "lose value"??
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06-17-2008, 12:57 PM
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$ Saving HS Freshman
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Join Date: Apr 2008
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Depends on the bonds, US Treasury bonds are considered virtually risk free. Bonds generally lose value if inflation is higher than the return, but inflation adjusted bonds such as I-bonds give you protection from inflation.
However, bonds generally have a 5 year period to avoid penalties for early withdrawal, so if you need the money in a year, you might look at CDs to avoid penalties.
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06-17-2008, 04:31 PM
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I'd stick with a MMA or CD.
One other thing to consider: Could you possibly use a bit of it to pay for school expenses, so that you could reduce the amount of your student loan (if you have one) by a little bit?
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