16 year old looking to invest safe way?

Question

Hi,

I have a checking account, and a savings account and I want to save up for a $500 CD account for short term because of the CRAPPY rates. Then I want to save up $1000 from my checking account and use that money to open a Money Market account with minimum of $1000. $500 CD will have no monthly payments and the $1000 Money Market too will have no monthly payment.

Is this a good Idea??????????

My parents will NEVER let me invest or place my money on-line and they said im stuck with my local bank. TCF BANk.

I want to play around with my money...I worked hard for my money and it deserves something better you know what I mean...

BTW I don't need the money until college when Im 18, I want to let you all know IM A BIG SAVER, I NEVER SPEND MY MONEY.

Plus, I get paid around $200-300 once every 2 weeks and will go directly to my bank..

Answer 1

You sound very saavy about money for such a young age. Unfortunately until you're 18 you can't do anything on your own, so you're going to have to find a way to talk to your parents. Let them know a cd in a bank is just like a savings account-there is no risk involved unless you're scared of the bank going under...but then of course with that low of an amout, you'll be FDIC insured (up to 100 k). Ask them if they would go with you to the bank to talk to a personal banker and have them explain it.