Getting a bonus check or tax refund, or just finding that you have some extra cash can tempt you to go on a shopping spree. However, investing that money gives you more spending options in the future and provides a safety net in case you come upon hard times, like losing your job. If you feel you need to invest your money quickly or else you’ll end up spending it, there are options that allow you to open an account and immediately deposit your money.
Invest the money in a certificate of deposit (CD). You can open and deposit money in a CD account at any bank. The bank has several options for you to choose from, such as opening an account with a minimum balance and selecting CDs based on years of maturity and interest rates. Typically, the higher interest rate CDs have a higher minimum opening balance and longer terms. CDs are insured by the FDIC, which means you will not lose your initial investment. But, typically, you cannot access this money until the CD matures a year or more later.
Open a mutual fund account with your bank or an online investment firm. You can invest your money in a low- and/or high-risk mutual fund that may bring higher returns than a CD. Just know that with a mutual fund, there are no guarantees, however. And you could lose money on your investment.
Put your money in a standard savings account at any bank. Savings accounts are one of the safest ways to invest your money because they are also FDIC-insured. They also allow you easy access to your money at any time. However, savings accounts tend to pay very low interest rates.
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