Lux Investing
What is the best way to invest in a CD? How long? How much?
I want to invest money for the first time (under $1000) just to be more responsible with my money. I want to open a CD with my bank but not sure as to how I should go about it...
Public Comments
- Rather than opening a CD, put your money into a high yield savings account. I have one through ING Direct that pays 3%. Because the money is not with my normal bank, I don't have immediate access, but it's still liquid if I need it. I have $100 transfered directly from my checking account every payday. I've tried using a savings account with my regular bank, but it winds up being too easy to transfer money and so it's more difficult to save. Another advantage to a savings account is you can continue adding all the time where a CD is usually fixed for the term of the CD. If you are set on a CD, then I would start off with a 6 month term so the money isn't locked up for too long. Just remember that the recent interest rate cuts mean that any FDIC insured savings is going to have a pretty low interest rate right now.
