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
The “trick” is to keep as much money easily available as you’ll probably need + an emergency buffer and put the rest into something that brings interest. Say, a cheap ETF on msci world (not advice, just a possible “beginner” product). You don’t want to put so much into it that you constantly have to sell because that costs money, just what you can probably leave sitting there for some years. There are usually saving plans for them too.
A simple savings account probably won’t even bring enough interest to make up for inflation. Better than getting no interest at all while the money is sitting in a “normal” account, but not really good either.
We used to have pretty great sovereign bonds or building loan contracts with good saving interest (Germany) but even those don’t pay anymore. You’d have to compare what options you can get locally. The next “simplest” option often are index funds.
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