Savings Account | Invest Wise

Turn a Small Investment into a Big ROI

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Turning your small investment into a big return of investment takes some research into the various investment opportunities that are available. The amount you invest doesn’t matter as much as ensuring that you have the best return possible on your investment.

You should start by contacting a financial advisor. Even small investments need good advice. You can use email fax services to get the recommendations and to compare all the investment options available to you. There are some things you should compare.

Check out the rate of return. The rate of return is how much interest you generate on your investment. For a large return, you want a higher interest rate than a bank savings account. Shopping around will help you find the best interest rate.

Assess the risk that comes along with higher interest rates. In the investment game, the largest return on investments are the ones that come with the most risk for loss. You may have to sacrifice a few percentage points in return rates to keep you from sustaining losses.

Look at long-term options instead of short-term ones. Long-term investments will build up your small investment into a much bigger return. This is because your first investment will earn interest. That earned interest adds to the amount in your account. Thus, your money will keep growing.

Set aside some money every month that you can add to your small investment. Put in an extra $5 or $10. Even that small amount of money each month will help your investment grow.

You don’t need a big investment to become a smart investor. Invested wisely, even a small investment can yield a big return.

Filed Under: Investments Tagged With: Business, Investing, Investment, Rate of return, Return of capital, Savings account

Invest in a Savings Account

Savings accounts typically have a low interest rate. That makes them less likely to earn you any significant amount of money. You can, however, take advantage of special programs associated with the savings accounts to earn a nice return on your money.

ING Direct

ING Direct has a referral program for their Orange Savings Account as well as a free cash reward for opening a new account. Sign up for an Orange savings account and get $25 free. Now here is the part where you can really earn. Tell your friends and family about the Orange Savings Account program and get $10 for each one of them that signs up. You won’t have any trouble getting sign ups either since each one of them will get $25 when they sign up. There is a limit, however, of 25 referrals. Still, that is a great investment. If you start off your account with $250, you could easily end up with an additional $275 two months later for a total of $525.

TD Ameritrade

Open a Save Yourself account with $100 at TD Ameritrade. Each month thereafter for a total of one year deposit another $100. At the one year mark, you will have a total of $1,200. TD Ameritrade will then reward you with a $100 bonus. That’s a 12% return on your investment in only a year’s time. That’s more than you would net with your average bond.

Other Savings Accounts

Many local banks offer a sign up bonus to attract new customers. Call around to find out which banks in your area have the best bonuses and open an account there. You can always close the account later on and invest your money again with another another company.

In conclusion, savings accounts can be a great way to invest small amounts of cash. A large and quick return is possible if you know which deals to align yourself with.

Filed Under: Investments Tagged With: Business, Investment, Money, Personal finance, Savings account

Investing Isn’t Just for Adults-Teenagers Can Do It To

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Teenagers can legally get a job once they turn 14 years of age. At this time, they can begin saving. Saving itself won’t be enough to reach large financial goals, such as paying for college or buying a house. Investing is the next logical step.

Money Market Account

Money market accounts work almost the same way that savings accounts do, but they yield a higher interest rate. Once your teen reaches $1,000 in his savings account, you will want to take him to the bank to have the money transferred to a money market account.

Mutual Funds

Once your teen has some money set aside in a money market account, you can introduce them to mutual funds. Mutual funds are not guaranteed like money market accounts, but they are less risky than the stock market. Mutual funds are a collection of investments that are funded by many investors. Set your teen up with a broker and create an account together. Allow your teen to make regular deposits in to the mutual fund based on your suggestions and the recommendations of the broker.

Stock Market

Playing the stock market is just as risky for a teen as an adult. If you allow your teen to get involved in the stock market, start out small. Take time to study the history of each company before choosing which shares to purchase. Your teen will not be able to participate in trading on his own, but you can do it for him. You may also want to get some professional council to fully understand the stock market before you continue.

In conclusion, it is best not to allow your teen to put all of his eggs in one basket. Monitor his investments as you teach him how to make wise choices. Then, when he is 18 he will be ready to venture out in to the financial world on his own.

Filed Under: Investments Tagged With: Business, Investing, Investment, Money market account, Money market fund, Mutual fund, Savings account, Stock market

Use of Custodial Accounts to Make Investments for Minors

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The government does not allow children under the ate of 18 to make investments, but parents can open a custodial account. Custodial accounts include both the parent’s and the child’s name. Children can deposit money, but only the custodian can withdrawal it.

Opening an Account

Make a list of the well known banks in your area. Call them with two important questions. Ask them if they are FDIC insured. Then find out what their going interest rate is for custodial savings accounts. Choose the bank that is insured and has the best interest rate. Take a trip to the bank to set up the account. You may need to bring the social security cards for both you and your child.

Building the Account

Commit to helping your child save some of his birthday and Christmas money by putting it in the custodial account. You can also make deposits and offer your child an allowance for a chance to earn more money to save. Once the account has reached a few thousand dollars, transfer the money to a custodial money market account. Money market accounts earn a higher interest rate than a savings account.

Making Investments

Transfer money from the custodial money market account to purchase Cds, savings bonds, and stocks. These investments will have to remain in your name until the child turns 18, but the child can be proud that the investments are being made with his money. Even better, your child will be increasing his finances to prepare for the future.

In conclusion, parents would be wise to use a custodial account to invest money for their children. Purchasing a car or paying for college will not seem like such an impossible task as the money begins to grow. In addition, the children will learn important lessons about saving and investing that they can carry with them in to adulthood.

Filed Under: Investments Tagged With: Custodial Account, Demand deposit, Investment, Money market account, Savings account

Safe Investment Options

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Everyone should invest their money in some way. For some people, this will be as simple as having a saving account in which they deposit a set amount from each paycheck or each week into an interest paying account. For other people, this will mean playing the stock market and investing in the stock of up and coming companies as well as those less volatile companies. The approach you take depends on a number of factors.

Savings accounts have been used by people for generations in order to earn a small amount of interest on their money while also keeping their money safe. Money placed in a savings account at a bank, credit union or other financial institution is generally insured by the United States government up to $250,000. With this safety, however, comes low interest rates. Savings accounts are notorious for offering little return on your investment.

Certificates of deposit are another investment vehicle that is often offered by financial institutions. CDs are also insured by the federal government so they are a safe investment. They offer you a higher rate of interest, in most cases, than savings accounts. With CDs, you invest a set amount of money for a certain period of time. You can often choose to invest your money for a period of time ranging from one month to five years. In general, the longer the period of investment and the larger the amount you have invested, the higher the interest rate you will earn.

Government savings bonds are another very safe investment. With this type of investment, you can purchase bonds from the United States government in increments of either $25 or $50, depending on the type of bond you buy. Government backed savings bonds are intended to be a long term investment. For this reason, if you cash them in before they mature, you will lose some of the interest they have earned.

Filed Under: Investments Tagged With: Certificate of deposit, Compact Disc, Credit union, Investing, Investment, Money, Savings account, United States Treasury security

Turn a Small Investment into a Big ROI

Invest in a Savings Account

Investing Isn’t Just for Adults-Teenagers Can Do It To

Use of Custodial Accounts to Make Investments for Minors

Safe Investment Options

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