What Is The Best Way To Save Money, Grow Interest, For A Short Term?
I want to save money, with a higher interest rate than my savings account. However, I am willing to save this money for about 6 months before needing to touch it. How can I find the best options, given today’s economy, to do this? I want to use this money as my emergency fund, budgeting my entire paycheck, to plan accordingly six months from now.
There is a relationship between risk and reward. The higher the interest rate, the higher the risk. If you go into an investment which has a higher rate of return, you risk loss of some of your principle.
I suggest that you get a CD at a bank.
Unfortunately,it is not possible.
Most deposit savings require at least $1,000.00 min.just to start and then you need to be sure that the fees do not eat up the interest you earn.
A regular savings account will accomplish the same thing and you can access the money when you need it.
Plus you can keep contributing to your savings account and then open a Certificate of Deposit account when you have more money.
You can get a 6-month CD. ING Direct always has good rates.