Where do I put my 20k?

**ktmarvels** · 08-14-2008, 05:56 AM

For just an online savings account ING or HSBC are generally highly recommended. However, you say you want to invest it, which brings to mind the stock market and mutual funds.

The best way to determine where that money should go is to figure out what you want to use it for.
Do you need it for school/college?
Do you have any debt?
Do you have an emergency fund?
Are you working? Do you have retirement accounts?

Depending on the answer to these, it may shape the responses.

**darthrader** · 08-14-2008, 06:47 AM

I may need money for college next year so I should plan for that, no debt, no emergency fund, no retirement, nothing really... I do work part-time for like 120 a week. Anyone have a job suggestion for me?

**darthrader** · 08-14-2008, 06:54 AM

I may need money for college next year so I should plan for that, no debt, no emergency fund, no retirement, nothing really... I do work part-time for like 120 a week. Anyone have a job suggestion for me?

**tripods68** · 08-14-2008, 07:46 AM

Set aside money for college/living expenses and emergency. Put it on money market account, a very liquid account for easy access. You should research to find out cost of schooling for the first couple of years.

Is your parents helping you pay for college?
Do you plan to pay partly through student loans/scholarships/ part time?

These are good questions to ask yourself. That helps to find out. You did not mention about a car, do you own one? If not I recommend you buy a used car that has excellent HIGH MPG. More importantly, this is a good rule to have about the "use of credit". ONLY use credit card if you can afford to pay the entire amount at the end of every the month. Use it wisely. Pay only what you can afford. Trust me!

I also realize you just starting college but you should think about setting up ROTH IRA and put anywere $50 to $150 a month towards it. Always pay yourself first no matter what. You can start by funding ROTH limit ($4K) this year as a start. This should gives you a good foundation where to start.

Good luck.

**noppenbd** · 08-14-2008, 09:02 AM

Originally posted by darthrader View Post

I will be 18 late september and will recieve 20k from life insurance to invest. I know nothing about saving/investing except that I am interested in an online savings account where I can check up on my money. I'll take all suggestions though, thanks.

I will need to open a checking account with other money as well so suggestions for that would be appreciated.

I would look into the new reward checking accounts. You could put the entire amount in the checking account. This one from Southern Community Bank pays 6% APY if you do 10 check card transactions a month, have 1 direct deposit or auto draft a month, and use online banking and eStatements:

Southern Community Bank and Trust: Personal and Business Financial Services - Home

**darthrader** · 08-15-2008, 04:44 AM

That looks good, any more recommendations?

**scfr** · 08-15-2008, 05:50 AM

Check out this thread for many options:

Saving Advice Forums

http://www.savingadvice.com/forums/investing-banking/19240-online-savings-accounts-current-rates.html

Beyond any money you need for college, I would hold on to that money and let it grow. It may be tempting to spend some of it, but resist the temptation!

**bankaround** · 08-15-2008, 07:22 AM

darthrader, if you go with the Southern Community Bank and Trust, just make sure you meet all the monthly requirements or else you will be losing out on a lot of interest. If you don't want to deal with that, look for a savings account that can get you about 3.5-4%+.

**darthrader** · 08-15-2008, 09:37 AM

Thanks, I can handle the requirements except I'm not sure about the direct deposit or auto draft. Can all companies do that for me? I just work at a Firehouse Subs. I know Publix Supermarket did it for me but they're a much larger corp.

**noppenbd** · 08-15-2008, 10:18 AM

I believe the auto draft requirement could be as simple as using their online bill pay to pay a bill. You'd have to verify that with Southern. You may have to pay it from the credit card website instead.

Where do I put my 20k?