So I have been saving up for a while, from college to now maybe $20k, and I keep it in a bank and get like no interest but I can withdraw my money anytime I want.
Due to using the money to pay for my credit card per month and getting my workplace to transfer my the money there I can’t deal with savings accounts that require me to deposit a huge amount and not expect it to go up or down. I would say I can save up to 24k slowly but also quickly go back to 19-20k. (Health and vet)
I heard about a different type of savings (not Roth IRA) but similar, you put like say 20k and get interest on it so you end up with like 20k+400. Downside is I can’t withdraw my money for a year??
I’m not sure which banks have this program and how much I can invest or should invest, I feel like I’m 5.
In: Mathematics
All good savings are currently >4% APY.
4% APY on $20k means $800 in interest the first year (minus incomes taxes).
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> Downside is I can’t withdraw my money for a year
That’s a CD (Certificate of Deposit; at a credit union it may be called a Share, as you technically own part of a credit union when you are member). 1Yr CDs were around 5.5% but they recently have been dropping and now are 5.05%, which is $1010 on $20k. 3mo CDs are at 5.15% currently (1Yr being lower than 3mo means banks either are uncertain of the future or they believe interest rates will come down, which mortgage rates have been slowly decreasing and now are averaging 6.78% for 30yr fixed).
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