Every dollar invested is money working for you. Here’s how to start on your own
Ready to invest? Even if it’s a small amount, it’s a great habit to build. Every dollar invested is money working for you. Here’s how to start on your own:
IF you plan to use the money you’re investing within a year, you likely won’t want to risk the stock market going down and potentially losing the money you put in. Instead, put your money into a high-yield savings account or even a CD (certificate of deposit) rather than a regular bank account, which only pays interest at 1% or less.
A high-yield savings account is typically with a non-brick-and-mortar bank such as UMB Bank. It functions like a bank (just make sure it’s FDIC insured), but doesn’t have a physical branch, which is how they can afford to pay higher rates. One way to access UMB Bank is through the Empower dashboard, so you can open accounts and track your money all in one place. You can connect it to your regular bank to transfer money. Right now high-yield savings accounts are earning between 3.75-4.75% interest annually, but please do your own research before investing.
A CD is a guaranteed loan to a financial institution. For example, you can get a CD through Chase Bank — that means that Chase Bank is borrowing your money, so it’s tied up and not available for a certain amount of time, such as three months to ten years, and you’re guaranteed a certain interest rate. It pays to compare offers from several institutions before making your final decision.
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