how do people keep their money in banks or savings accounts and earn?

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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

12 Answers

Anonymous 0 Comments

I inherited money when my dad died a couple of years ago. I’m not the least bit interested in high risk/high yield investments, so I put a chunk of it into a CD (certificate of deposit) and they earn around 5%, which is around $1,000 per year for your 20K. You can usually choose from a couple of different maturation periods; the ones I’ve done have been from 5 months up to 11 months.

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