16 year old lots $, nothing to do with it but save?

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

Save it.  College is really expensive and if your lucky you will have some left over after college and you can go travel and do something really exciting.  Your only young for a while and you cant take it with you so after college do something you will never forget for the rest of your life

Answer 2

generally, CD should pay something.  Generally, it'd still be higher than Money Market... So, check the rates, and go with whichever is higher.  (I suspect a long term CD...)

Answer 3

Try looking into Bonds. I just turned mine in and they gained over 800$ in interest. It's a pretty good deal.

Answer 4

To check for higher paying CDs or money market accounts, go to www.bankrate.com.  They will compare rates across the country, including your local rates.  Perhaps if you show that to your parents, they will let you at least invest in the institution that is paying good interest.  (However, BEWARE of the ones with only a 1-star rating.  They tend to show higher interest, but may be in serious financial difficulty. ) Stick to the 4-star ratings, and you should be fine.  Good luck.