Lux Investing
Is a CD a good choice to invest our wedding gift money?
I recently got married and we got mostly money like we asked for, but I want to make sure that this money is invested wisely for our future. I like ING Direct and was looking at their CDs at a 3.75% apr rate and thought that it may be a good idea to invest a large portion of this money there, as we probably won't touch the money for 6 or 12 months. Any suggestions to other means of investing our money. I am a conservative investor and would only put the money in something guaranteed. total amount = $2500
Public Comments
- NO, INFLATION RATE IS HIGHER AT 4.01. GET EDUCATED!
- convert it into gold and sit on it
- looking at stuff today i would just keep in a box somewhere in ur house
- well how much montye are you talking about
- I have a CD, and it's a great way to save money You have a CHANCE at making more in the stock market, but if you're like me you see that as gambling... with more experts. Look around though, because my CD was at almost %5
- nothing is guaranteed with this economy... buy things you need for your house with the money...
- right now with the economy a CD is probably the safest way to store any kind of money i wouldn't recommend it if you don't have ALOT i would suggest a CD for anything over $500 though and 3.75 is a decent rate and is government insured and is in my opinion the best way to go.
- This depends on the time horizon for your investment - but given that you will most likely need the money in 6 to 12 months, I believe a CD is appropriate at this time. I personally bank using ING Direct, and their 3.75% APY is among the higher yields available. If you are most comfortable using ING Direct, then I see nothing wrong with investing with them. I actually just opened two 12 month CDs with GMAC Bank because their yields were just a bit higher at 4.20% APY. I just checked now, and it looks like their 12 month yield is now sitting at 4.10% APY. Their online banking appears to be similar to ING's, and of course, is FDIC insured. Congratulations on the recent marriage and good luck!
- If folks gave you and spouse a combined total of $2500 after or because of the marriage, that is traditionally to help you for things like the honeymoon or moving in together, etc. As for me, I know a couple of credit unions that would safely give you that kind of interest, no strings like with a CD. My town literally has a couple of dozen different banks and half of them would give a comparable amount in a common savings account. Don't sweat it, just do what friends and family expected, make the transition a little easier. It is never a waste to spend money on living expenses or little luxuries when the givers intended for you to spend it for that. Congrats, by the way.
- I would definitely consider investing it into a CD or some other vehicle, such as an MMA. If you're not going to touch it, why not put it into something, and let it sit and earn interest?
- That time frame is a short term investment. A CD is safe, insured, and good for your time frame and risk tolerance. Hope you have a happy, long married life together, and your nest egg grows!
- A federally insured CD is probably your best bet. The amount of money ($2500) is too small to open accounts with many money market funds, and the CD has a better yield anyway.
