What is/are the best savings accounts?

Question

I am 23 and want to start saving some money for the future and retirement... What are the best saving accounts to have? I will be saving money that I won’t have to touch for at least 1-2years. My current employer does not have any kind of 401K so I cannot go in that direction. Any input is deeply appreciated. Thank you!

Answer 1

Most retirement accounts you can't touch until you retire without paying early fees. There are a few exceptions. I would start putting a little of your paycheck ever month into a Roth IRA if you don't have any 401k at work.

Put this rest in a high interest earning account. You can find these accounts by going to http://www.bankaround.com.  

Answer 2

Under the mattress for the next few months.

After the gas rush of fears, decide on a good brokerage to manage your retirement plans.  I have two.  Money goes up and down, but eventually, I always seems to make a lot in the end.  I put $100 a month into the plans automatically from my checking account.  That assures that I will do it whether I like it or not.

I started this at age 22 with a child and as a single mama.  Happy to say that I literally have THOUSANDS of dollars saved now.  If I ever get deserpate, I have it in tow, or to pick up the leftover tabs on my sons college.

Answer 3

Open an IRA at your local bank.  Buy US Savings Bonds.  These are "put and keep" types of savings.  For "put and take" savings open a basic savings account at your local bank or savings&loan where you should try to save at least 6 months of your net income only to be used in a emergency.  

Try to live at home as long as possible even if it means doing all the housework or lawn care, etc.  Save what you would have spent on rent, cable, etc.  If you are already on your own rent a studio apartment or efficiency apartment or a room in a home with cooking priviledges.  Avoid the problems with roommate situations...at your age they often turn out badly and a lot of money is wasted.

If possible use public transportation.  Automobile ownership is a HUGE expense.  Try to live close to your place of employment.  If you can not live close figure out the absolute cheapest way to travel to work and back.  Carpool if you can as a paying rider.

If you can find a part-time job of 15 hours per week.  That extra paycheck will DEFINITELY enhance you ability to SAVE.  

If you smoke...quit.  Huge savings.  If you drink other than 2/3 drinks per week ....quit.   If you eat most of your meals out and on the run....STOP.  ALL can amount to  huge savings. Walk, run, and bicycle ride for fun and entertainment.  Get a library card and borrow movies at minimal cost.  

Continue to improve your skills, as you  never "complete" your education.  Look into the future and decide where it is you wish to be in 3, 6, 9 years....then decide if you are doing all you can to help yourself get there?  Remember there is now a global economy with people all over the world capable of doing the jobs of most Americans.  

These things are not as drastic as they may sound...many young people have done these things in the past and are doing them today.

I hope you will find a few of these ideas helpful to you.

Answer 4

write suze orman..She will give the best advice on that..or watch her show on tv, and call in...www.suzeorman.com

Answer 5

There are many options including IRA's and high yield savings accounts.  Do your research on the investment type before putting any money in.  You can find current rates of different investments on www.bankrate.com.  Also check out the site in my sources for a review of other investing and savings tips.  Good luck!