Savings account question

[mikecobra01]

Latley Ive been thinking about trying to find a savings account that I can put some money into so my money will gain interest over a period of time. Not alot of money, maybe like $2000 or so.

I have no clue on how the stock market works, or what to invest in, or anything like that. And Id rather not put my money into something that I would take a chance on losing it.

I found account with Wells Fargo called a Money Market account. I was just wondering if any of yall have expirence with an account like this or not? They say the money in the account compounds everyday, what exactly is that? It says it has a APY of 0.05%, and a bonus of 0.10%, is this good?

Sorry if these are stupid questions lol, im a newb at this kind of stuff.

Thanks guys

 

[MysticRob]

My first bit of advice is never take money advice from a car forum. LOL

I go here when I want to check rates. You can use it to compare various account types and rates.
Money Market Rates and Accounts | High Yield Current Today's Highest Money Market Rate

And read this repeatedly to learn all about how to make your money grow:
Investing For Dummies: Eric Tyson: 9780470905456: Amazon.com: Books

 

[verbal]

You are better off with an online savings account at the moment. .05%-.15% is nothing and you will barely see any interest on $2000. Online accounts line Ally seem to be paying the best rate right now at .9% with no fees. TIAA has a new savings account paying 1% but it is not open to new customers at the moment. There is also something called Kasasa checking that is paying 2.5% but you have to have debit card transactions every month to get that rate.

 

[SonicDTR]

Waste of time, Save up the cash in your bank account and put excess towards debt.

Paying 6% on debt while gaining 2% interest on a savings account doesnt make sense to me.

So my vote is either invest it aggressively to gain more than any debt interest rate, or just use it to pay off debt.

 

[50 Proof]

What are your financial goals? Do you simoly want to stash $2,000 away for rainy day emergencies? Do you have any high interest debt? Are you tryng to grow your money?

All basic savings accounts, online or not, pay very little interest. Even if you find an online savings accounts that pays around 1%. Online savings accounts are basically good for stashing away emergency cash that'll be easy to access. Bank accounts at standard b&m banks like chase and wells fargo are a waste unless you absolutely need fast atm access to the cash. Otherwise just pick any online savings account that is fdic insured, they're all the same. .75% interest or .9% interest won't make much of a difference.

If you're wanting to grow your money then aggreasive stock market investments are your best option.

 

[forbanger]

Waste of time, Save up the cash in your bank account and put excess towards debt.

Paying 6% on debt while gaining 2% interest on a savings account doesnt make sense to me.

So my vote is either invest it aggressively to gain more than any debt interest rate, or just use it to pay off debt.

^ On the spot advice.

 

[mikecobra01]

Thanks guys for the tips and advice.

I guess my goals would be to eventually not have to depend on a paycheck every week, and also save for my future and be able to build cars on the side too. I dont see myself getting a good paying job anytime soon so I figured I would take a different approach to make money.

I guess ill look into investing and see if I can get a grip of the concept of it. Is there a way to start with just alittle bit of money and still see results? That way I can start off slow incase I screw up lol!

Thanks!

 

[Fuerza]

Waste of time, Save up the cash in your bank account and put excess towards debt.

Paying 6% on debt while gaining 2% interest on a savings account doesnt make sense to me.

So my vote is either invest it aggressively to gain more than any debt interest rate, or just use it to pay off debt.

Agreed.

 

[50 Proof]

Thanks guys for the tips and advice.

I guess my goals would be to eventually not have to depend on a paycheck every week, and also save for my future and be able to build cars on the side too. I dont see myself getting a good paying job anytime soon so I figured I would take a different approach to make money.

I guess ill look into investing and see if I can get a grip of the concept of it. Is there a way to start with just alittle bit of money and still see results? That way I can start off slow incase I screw up lol!

Thanks!

Before you invest anything in the stock market, I would advise picking up some beginner stock market books so you can familiarize yourself with stock market terminology and how the trading process works.

The stock market is a great way to grow your money. There are many approaches to investing in the stock market, some more risky than others. There's day trading and there's buy and hold, just to give you two examples. The general rule to stock market ijvesting is not to invest anything you can't afford to lose.

My recommendation would be to sit tight on your cash and put it in a savings account and research more on stock investing. If you have high interest debt it would be a good idea to pay that off first.

 

[silverstang23]

A money market account will not earn you enough interest to mess with. I have one with around $30k sitting in it and only earned $11 this past year. I rather have no interest and not have to deal with the 1099 lol.

Stock market is your best bet but sounds like your not ready for that.