Is opening a Charles Schwab worth it if i am a college student? Am I locking myself in?

Question

I have like 15k that is really just sitting in cds... which seems pointless, any recomendations?

Answer 1

15k is a nice emergency fund, especially for a young person.

My recommendation is that you not trade stocks...that is just an open invitation to gamble...which means you will have $0.00 in 4 years.

Do you have earned income?  Do you have a Roth Ira yet? That is one thing to think about.

Other than that, I would recommend that you compare 6 month and 1 year CD rates to an INGDirect Savings account (and or CD rates).  

Put $5000 into the INGDirect Savings account.

For the other $10,000, put it in CD's if the rate is higher (no longer than a 1 year CD) otherwise add it to the INGDirect Savings Account as well.

Answer 2

I like Schwab and have done my trading with them for the last 10 years.  As for your money it depends on what your goals are.  If you want to save for retirement open a Roth IRA.

You may want to look at Market tracking mutual funds or break it up by putting 3k in a large cap fund, 3k in small caps, 3k international fund, 3k in Tbills or bonds and keep the other 3k in CD or check out some good dividend stocks.  Market is down now so there are some stocks at good entry points.  But where there is reward ther is risk...