Start with a savings account that pays interest. You may have one already. If not, you ought to. You can open a savings account at the same bank where you do your checking or at any other bank. Your savings account should earn between 2 and 4 percent interest.
Unless you have a million dollars in that account, it's not much money, but it's a start and generates income.
Purchase money market funds next. Frequently, you can accomplish this through your bank. These funds operate similarly to traditional savings accounts but pay significantly higher interest rates. Your money will be locked temporarily because these are short-term investments, but it still earns money.
Certificates of Deposit are risk-free investments that are also good choices. Savings accounts and money market funds often offer lower interest rates than certificates of deposit (CDs).
The length of your investment is up to you, and interest is paid consistently until the CD matures. Your bank will cover CDs against loss, and you can purchase CDs there. You receive your initial investment and any interest accrued when the CD matures.
The best place to start investing is in one or all of these three categories. Once more, doing this will enable your funds to generate income as you develop knowledge about investing in various markets.
Unless you have a million dollars in that account, it's not much money, but it's a start and generates income.
Purchase money market funds next. Frequently, you can accomplish this through your bank. These funds operate similarly to traditional savings accounts but pay significantly higher interest rates. Your money will be locked temporarily because these are short-term investments, but it still earns money.
Certificates of Deposit are risk-free investments that are also good choices. Savings accounts and money market funds often offer lower interest rates than certificates of deposit (CDs).
The length of your investment is up to you, and interest is paid consistently until the CD matures. Your bank will cover CDs against loss, and you can purchase CDs there. You receive your initial investment and any interest accrued when the CD matures.
The best place to start investing is in one or all of these three categories. Once more, doing this will enable your funds to generate income as you develop knowledge about investing in various markets.
