New to personal investment so I apologize if this is a noob question. I have around 20k cash lying around and savings account don’t have the best APR. Whereshould I save this money so that I get the best returns? Appreciate all the help 🙏🏼

like
Posting as :
works at
You are currently posting as works at

Here are some options depending on how liquid you need the money.

The most liquid option is a High Yield Savings Account. Many of the banks that pay the highest interest rates are online only - so balance the convenience of being able to deposit cash or receive in person help versus the higher potential returns. These look to be giving ~0.50% ish percent now. So you’d earn about $100 a year on this.


Next in terms of liquidity are money market funds. They typically have a minimum deposit, but offer many benefits similar to a checking account. Similar rates to high yield savings.

Next could be a local credit union. I know in Michigan multiple credit unions offer 3.00% checking. No national bank would do this, but local credit unions will on occasion. They typically have fairly tight requirements including a direct deposit, 10 transactions on a debit card a month, paperless billing, and checking the XX times a month. However, considering doing this myself. This would earn you $600 a year if you can find it.

Another option is a certificate of deposit (CD). These are fixed terms for which you loan the bank money - ranging from a few months to many years. Interest rates on these aren’t very good right now, but if you know you absolutely won’t need to touch the money for year(s) and want to put it away. Problem with this is, if you have an emergency during the year and have to touch the money, you sacrifice the interest and pay penalties. Interest rates will likely go up in the next year, so if you go this route, put some in a one year CD - looks like the best rates around between 0.60-0.70% online.

Next - you could try a bank with a sign on bonus. Most of the time this requires switching your direct deposit. However, you can typically earn between 100-500 in a sign on bonus in addition to interest. Sometimes they pair a checking account and savings account bonus. See doctor or credit for these.

Other than that, you could try bond funds, but keep in mind these have potential losses, fees, etc

likehelpful

Take a long-term approach and invest in some mutual funds/ETFs like the S&P or the NASDAQ

like

DeFi if you’re up for it!

Is the money your emergency fund. If so keep it safe. You can shop around for some better rates but may take a little more effort. Most savings accounts are around .5%.

What's the money for? If it's your emergency fund or you need it in next 5 years, use HYSA. If you don't need for 5+ years, invest in index funds.

Agree with others that it depends on when you will need it and what other investments you have. I use the Vanguard short term investment grade fund as my overflow account between checking and investments. It currently has a .8% yield. Min opening balance is $3,000 and you can transfer back to your checking or Use it to buy investments. As a short term bond fund there’s little volatility. If you are ready to invest and won’t need the money for a few years an S&P500 ETF if a good core investment.

Related Posts

What is your favorite mathematics topic to teach? Mine is probably graphing trig functions. I just love graphing, but the kids seem to hate it.

like

Hello people!

It’s been a good journey ever since I started to work with a team where our major goal is implementing digital banking solutions. But Im part of business team and not product team. Now I’m more interested in the digital products and have enrolled my self for this UI/UX designer course as I want to change my career trajectory and don’t want to work as key relationships manager in the business team anymore. Can anyone share their experience and feedback, what more I need to do ??

like

Hello Everyone, LTI is doing mass recruitment these days. Are there any risks, since recession news are coming up . Any effect to LTI employees after complete merger with Mindtree

like

Are USDC employees eligible to charge to GAA for dinner if we’re working more than 11 hours a day? I know traditional/specialist tracks are eligible, wasn’t sure about USDC.

like

I was recently offered 70k for tech consulting at a smaller firm. As a first job out of school is this on target?

like

Hi Sharks,
Need some inputs. Have 3.9 years of Experience as an SAP ABAP Certified Consultant. Looking for change.
How much package should i ask to recruiters? How much will i get in current market?
CCTC : 6.7

like

Generally curious about this years incoming batch of undergrads. What is your role and starting salary? Lots of HR laws ( CA, NY) and inflation this year so curious to see if people were able to use this to their advantage etc.

like

Hi, How much time it takes to complete bgc and laptop assigned for associate? Recently joined infy, it's been one week.I

My male manager stares at my man boobs..

likefunnyuplifting

Hi fishes .... I am Looking for job for change.. i have 6.5 years of experience now currently working as Area Sales manager.. searching for better opportunities..

like

Hi all, welcome to this bowl where we discuss, share, and uplift each other as high achieving women who lead!

likehelpful

Apparently McKinsey has hit their hiring target for experienced hires for the year and will resume for the 2021 cycle.

likehelpful

Deloitte 🐠- I meet the tenure requirement for GC now and I’m on H-1B. How is the process initiated? Will D reach out to me during this upcoming August cycle or do I have to reach out to Immigration?

like

Pharmacist

Hi all!

I'm a UK pharmacist hoping to qualify and work in the US. Is it still worth doing or any tips in general? I've read on Reddit there's a surplus of Pharmacists in the US. What are your views on that?

Thanks!

like

Strongly considering leaving audit as an A2 without any other job lined up. Would this hurt my chances of receiving an offer if looking to pivot into real estate finance?

like

Hi All
What is
Adobe's interview process? How many rounds are there?
And how much do they pay to QA Professional 8+YOE. Adobe

likehelpful

Hello fishes,
I have joined ZS 6 months back as a AC but still I am not able to settle in the role provided to me. I am not having a consulting background either. Imposter syndrome and feeling of uselessness is at the top. I tried sharing the same with my seniors but they said it will get better with time. How do I gather my courage and motivation to work? I feel too lonely and left out

like

What are your favorite nursing podcasts?

like

Additional Posts in Personal Investment Chatter

VTI, VOO, or VTSAX - which do you all prefer and why?

like

New to cryptocurrency and want to invest in it. Recommendations welcome. How to start? Coinbase vs. GBTC via Vanguard? Is it a good time to enter?

like

what’s the most you’ve spent on brunch 🤣

funnylike

Is BRK-B a buy right now?

like

Investor’s Business Daily: worthwhile?

like

Anyone else feel like they’re never going to be able to afford a house??? I’m 25 & live in New York. The real estate prices are crazy here

like

I’m a first time home buyer and trying to figure out how to get started. Any good resources you all have come across or tips in general? Specific question in comment below

like

Has anyone ever done a postnuptial agreement? At the time of marriage, my spouse and I were relatively equal in terms of finances. I recently came into a large inheritance, and have also had more rapid career success. I’m not trying to be cynical, just trying to be smart. Nobody thinks they will get divorced. This would make me feel much more comfortable. Any guidance?

like

Came across a duplex for 475k in SoCal. Up and coming area that’s getting gentrified fairy fast. Looking to rent out the front for 2k and and splitting the back with a housemate for 1k. Cont below.

like

Repeat with me, this is a buying and holding opportunity! 👏🏻

like

Better alternatives to mint for understanding spending/spending categories over time?

like

24, a decent amount of savings in the bank. I’m sort of interested in buying a property in the next few years.
Is this a good or bad idea? I live in Ny area, so obviously the city would probably be too expensive to buy any property. Would probably have to buy further out in westchester, Long Island, maybe connecticut or NJ. If I buy, should I be living there? Or should I rent it out until I’m ready to live there (assuming it’s a bit further from the city). Very early stages of just thinking

like

Has anyone here bought land and built a home or completely renovated a new one in the city? Outside of timeline, are there other pros/cons you would highlight? What was more cost effective?

like

Which career pathway to take, if I reside in BC (Canada)
1) Clinical Psychologist
2) RCIC (Immigration Consultant/ Lawyer)

I’m open to pros and cons or any insights if you work in either of those industries?

Thank you in advance ☺️

like

What ETFs, index funds do you all invest in and what u recommend in this recession looking like economy. I'm a beginner investor. Just opened my fidelity brokerage account.

like

Just started a new job and after doing some research found out they do not offer a Roth 401k. My choices are limited to a traditional 401k or After-Tax Contributions. After speaking with a friend who’s a CFP, he suggested I contribute only to the After-Tax, but I wanted to validate that advice here. If it helps I’m 24 and my current base is around 110k. Thanks in advance!

like

Has anyone maxed out their Roth for the following year yet? Thinking of taking it out of my account for the following year and capitalize on the gains

like

Where do you go for stock market news?

like

When you do a back door roth - do you close the traditional ira or leave it open? My first time doing it and fidelity is asking which I prefer.

like

I’m considering Schwab roboinvestors to manage my investments actress various index funds aligned with my risk profile. Aside from the large 6% cash requirement, what are other downsides?

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Send download link to your phone

OR

Scan your QR code to download
Fishbowl app on your mobile

By continuing you agree to Terms of Use and Privacy Policy.

Messaging rates may apply

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal