Q Investments
October 10th, 2005
Question: Best place for short-term investments?
Here’s the detaiils: Suzy Q is a good college student with a scholarship to a state school and well-meaning parents who set up a savings account for her while she was young. This account has around $20,000 in it, but it is currently in an account with a lousy rate. Originally, this account was intended to be put toward college, but Suzy miraculously hasn’t needed to touch it because she maintains a full ride scholarship and works for her living expenses.
Suzy’s parents have turned over the control of this account to her, but she is just beginning to learn about personal finance. What would you recommend Suzy do with her money until she learns enough to feel comfortable with making a long term decision?
Answer: Suzy should put the money somewhere safe until she learns more about the risks and benefits of investing, and decides what the purpose of this money will be and when she’ll want to use it.
There are Bank CDs and Online Savings accounts that pay over 5% a year, that are FDIC (federal government) insured up to $100K.
Go to Bank Rate.com to find the best rates for the savings accounts and CDs.
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