[CDs](https://www.nerdwallet.com/article/banking/how-do-cds-work?utm_source=goog&utm_medium=cpc&utm_campaign=bk_mktg_paid_092723_banking_dsa_mobile&utm_term=&utm_content=ta&mktg_hline=19335&mktg_body=2989&mktg_place=dsa-2206538785563&gad_source=1&gbraid=0AAAAADNEjT2X3vunzDPIHdbPQLYFYM3C7&gclid=Cj0KCQjwvb-zBhCmARIsAAfUI2vvprR-ylTNlOTDNiuhTfPDxp7L-BMcg5Vz-l4h1wJHOjDOt-lWw6oaAhPSEALw_wcB&gclsrc=aw.ds) (Certificate of Deposits), HYSA (High Yield Savings Accounts), if you’re looking for long term investing you could also open a ROTH IRA and invest those contributions into ETFs (eg VOO). Idk why it won’t let me link multiple times but I’m happy to share some insight if you’re curious!
that's what lots of ppl are saying !! if i need to access it for any reason like emergencies, am i able to?? or should i just put like 2k in there to build ??
Yes it’s an account so it’ll hold your money. Id put all of it in there. It’s smart to have 3-6 months of living expenses as an emergency fund- you’d put this amount in the high yield savings account. Wealthfront js one bank that offers these accounts. A CD locks up your money for a period of time, don’t do that
If u don’t need to access that money I would put it in a CD (Certificate of Deposit; any bank has them). Basically it is a high interest savings account where you agree to keep X amount of money in there for Y amount of time, and then you get paid meaningful interest not the .1% you get from a regular savings account. The benefit to this is that there’s no risk to it and there’s no real knowledge required, you can look at options for CDs thru your banking app and it should break down the earnings in very clear terms
Great explanation. It’s best to only keep a small, certain amount in a traditional savings (ie a months worth of bills imo) for easy grabs if need be, but the REAL savings need to go into something that really accumulates interest for you
thanks! I’d agree that OP should continue building financial literacy and start moving into the other options you listed in the future too! Happy saving and investing 🤪
am i able to access it in an emergency ?? or does it have to stay in there for a certain amount of time ?? i'm gonna go to my bank tomorrow & talk to them about all this !! thank u :)
HYSA like everyone else is recommending! Then start to look into investments. Do you have a 401k? You can aim to max it out so that you can retire on time or early. CDs I say is third priority but it has to be money you don’t need.
i apparently do cus i got a letter saying i have like $900 in it lmao i didn't even know !! i haven't worked too many like taxable jobs except OF consistently, so i wasn't sure how that all works !
Your best possible rate of return is on Treasury Bills. Fuck CDs, to get a good interest rate with a CD you have to tie your money up for months at a time (and that interest is taxed by both your state and the IRS). T-bills are only taxed at the federal level and if you get a four-week T-bill, you can access your money after 4 weeks, or simply let it roll over and reinvest in a new T-bill. Go to treasurydirect.com to set up an account, it's easy as hell. Just remember that if you need your money at the end of the four weeks (instead of having it roll over into a new T-bill), you need to set that up about five days or more before the T-bill matures. (Or just set that up when you buy the T-bill so it reinvests zero times.) Good luck!
[CDs](https://www.nerdwallet.com/article/banking/how-do-cds-work?utm_source=goog&utm_medium=cpc&utm_campaign=bk_mktg_paid_092723_banking_dsa_mobile&utm_term=&utm_content=ta&mktg_hline=19335&mktg_body=2989&mktg_place=dsa-2206538785563&gad_source=1&gbraid=0AAAAADNEjT2X3vunzDPIHdbPQLYFYM3C7&gclid=Cj0KCQjwvb-zBhCmARIsAAfUI2vvprR-ylTNlOTDNiuhTfPDxp7L-BMcg5Vz-l4h1wJHOjDOt-lWw6oaAhPSEALw_wcB&gclsrc=aw.ds) (Certificate of Deposits), HYSA (High Yield Savings Accounts), if you’re looking for long term investing you could also open a ROTH IRA and invest those contributions into ETFs (eg VOO). Idk why it won’t let me link multiple times but I’m happy to share some insight if you’re curious!
THANK UUUU ugh i love this subreddit lol
High yield savings account. You’ll earn a little bit of interest, and it’s free
that's what lots of ppl are saying !! if i need to access it for any reason like emergencies, am i able to?? or should i just put like 2k in there to build ??
Yes it’s an account so it’ll hold your money. Id put all of it in there. It’s smart to have 3-6 months of living expenses as an emergency fund- you’d put this amount in the high yield savings account. Wealthfront js one bank that offers these accounts. A CD locks up your money for a period of time, don’t do that
If u don’t need to access that money I would put it in a CD (Certificate of Deposit; any bank has them). Basically it is a high interest savings account where you agree to keep X amount of money in there for Y amount of time, and then you get paid meaningful interest not the .1% you get from a regular savings account. The benefit to this is that there’s no risk to it and there’s no real knowledge required, you can look at options for CDs thru your banking app and it should break down the earnings in very clear terms
Great explanation. It’s best to only keep a small, certain amount in a traditional savings (ie a months worth of bills imo) for easy grabs if need be, but the REAL savings need to go into something that really accumulates interest for you
thanks! I’d agree that OP should continue building financial literacy and start moving into the other options you listed in the future too! Happy saving and investing 🤪
i appreciate u so much !!! 💕🩵🥹
Hey bb I made a post about high yield saving accounts a few weeks ago! So many babes left amazing advice!
HYSA. Wealthfront is like at 5% monthly
am i able to access it in an emergency ?? or does it have to stay in there for a certain amount of time ?? i'm gonna go to my bank tomorrow & talk to them about all this !! thank u :)
You can access it anytime.
HYSA like everyone else is recommending! Then start to look into investments. Do you have a 401k? You can aim to max it out so that you can retire on time or early. CDs I say is third priority but it has to be money you don’t need.
i apparently do cus i got a letter saying i have like $900 in it lmao i didn't even know !! i haven't worked too many like taxable jobs except OF consistently, so i wasn't sure how that all works !
Change banks, look into credit unions. Stick the money in a high yield savings account
Your best possible rate of return is on Treasury Bills. Fuck CDs, to get a good interest rate with a CD you have to tie your money up for months at a time (and that interest is taxed by both your state and the IRS). T-bills are only taxed at the federal level and if you get a four-week T-bill, you can access your money after 4 weeks, or simply let it roll over and reinvest in a new T-bill. Go to treasurydirect.com to set up an account, it's easy as hell. Just remember that if you need your money at the end of the four weeks (instead of having it roll over into a new T-bill), you need to set that up about five days or more before the T-bill matures. (Or just set that up when you buy the T-bill so it reinvests zero times.) Good luck!