What should I do with the $3000 dollars in my savings account?
Phil Gramm asked:
It’s only gaining like a buck per month and I haven’t touched it in several months.
It’s only gaining like a buck per month and I haven’t touched it in several months.
It seems I make $16,500 per year after taxes and health insurance….
Should I take the money out and put it in a money market account at my bank?
Give me some advice Yahoo Answers Finance experts…
Eugenie Bourgoin
do some research in the stock market and invest some of it. once you start making money, invest a little more. $3,000 is a small amount of money for a savings account. that could easily be eaten up by a couple of months without a job, or a major car breakdown, or hospital visit.
Don’t invest in the stock market until you have 6 months of normal expenses saved up as an emergency fund.
You should look into moving your money into one of the many free online High Yield savings accounts
See here for a list:
Wamu online savings for instance, has a $1 minimum, and will earn you more than 9 time what you are earning now
Other popular accounts include EmigrantDirect.com, INGdirect.com, GMACbank.com, and FNBOdirect.com, although these accounts aren’t paying the highest national interest rates right now.
Be careful not to invest it in some investing program that you have heard little or nothing about. You could very easily lose all your savings in something that somebody referred you to because chances are that they have some hidden benefit from your investment such as they are an employee or contractor and will get a commission, they own stock in that company so you will prop up the price for them to sell it, they have ownership that enables that to be a transaction for their profit, or they own the company and can shut it down, take all the investments, and start over with a new investment scam.
Your savings is good for emergencies like replacing your car, putting a down payment on a house, deductibles for catastrophic events, etc. so you should not invest it anything long-term like stocks. Since you have touched it a few months ago, you should also put a little into it every month so you won’t use it up in a few years.
Money market funds would be good for a good return and access to your cash. Your current bank should have one available. You should also check prices at other banks. You could probably set up one at another bank that pays a higher rate and will allow you to make ATM withdrawals, counter withdrawals, or wire transfers for free.
I would leave it there for the time being. If it were in any other account you would actually be losing money now – not even gaining $1.
Savings accounts are the only thing making $$$ right now.