Need some financial advice

[lchyi]

Okay this question may or may not be strange to ya'll but here it is. I'm a second year college student with about $3.7k sitting in the bank (stop laughing I don't have a job) and I'm wondering what to do with it. Should I keep it in my savings account at BoA or put it into something else that generates more interest? Should I invest it into something? Anyway, I'm too cheap to go hire someone to give me advice so I ask you guys at ATOT. I'm fairly sure there's a better option out there and even though this is small change, I think it'd be better to start early and small than never at all. I don' t browse these forums much anymore so if you PM me on top of posting (for everyone else's benefit in case they have the same problem) it'd be greatly appreciated. Thanks ATOT!

 

[LS20]

stick it in an index fund

 

[DaveSimmons]

I don' t browse these forums much anymore so if you PM me on top of posting

Nope. read you own thread.

www.INGDirect.com is probably your best choice unless it's earned income you don't need for 30 years, in which case an IRA makes sense. For non-IRA accounts most online brokerages need at least a $5K balance to avoid "maintenance fees."

If this is money you don't need for 5+ years, once you have over $5K then an index mutual fund is your best choice, your can get one of the best (VFINX S&P 500) directly from www.vanguard.com

 

[sygyzy]

There is a program out there called the IDA (Individual Development Account). It gives 2:1, 3:1, matching for savings. So imagine putting $100 in the bank each month and they give you $300. You have to make under a certain salary though (I doubt you make more than the max). Google it and enjoy the free money I wish I had when I was in college.

 

[dafatha00]

Originally posted by: DaveSimmons

I don' t browse these forums much anymore so if you PM me on top of posting

Nope. read you own thread.

www.INGDirect.com is probably your best choice unless it's earned income you don't need for 30 years, in which case an IRA makes sense. For non-IRA accounts most online brokerages need at least a $5K balance to avoid "maintenance fees."

If this is money you don't need for 5+ years, once you have over $5K then an index mutual fund is your best choice, your can get one of the best (VFINX S&P 500) directly from www.vanguard.com

You can invest in Vanguard's 500 fund for $3000