I would say it depends upon what your goals are.

If you're saving up for a car or a house.. then the CD's might be a good option if they matured right around the time that you were ready to make a purchase.

Otherwise.. If you're just saving for retirement and building wealth for its own sake.. then putting money into an IRA or a ROTH IRA (that invests in mutual funds) would be better in the long run. The idea is to out-pace inflation long term.

Good Luck!

forget the CD's. keep your "investment money" in online savings accounts. they'll pay the same yields and don't tie up your funds should an emergency happen.

Awesome,well the point of the CD is just to leave it and let it grow..Thats why I would keep some money on the side for emergency.

Now,what savings account could I look into where I can add money and let it grow without tie-ing it up?


Thanks

I think any on-line banking will yield higher interest rates than a physical bank. ING Direct for example. You might want to check up on it.

Another idea instead of a CD could be to invest in a simple index fund.

So just start my ign now with a few hundred dollars and slowly add to it till I have several k's and then I can really put it to work?

I have a better idea. Keep the money in a savings account for emergencies and spring break trips. You are young, have fun. When you are done with college, then begin your investment planning.

in current economy, cd has a very low rate. better use ING. but no matter what you use, save money is definitely a good idea than spend more.

Samsumon,
Don't listen to all the other people that posted. These people are mediocre at best judging from their posts and probably don't even want to spend the time to honestly give a damn.
Since you are fairly young (It is never too early to start investing), you should do some stock investing (it is risky but being young and if this is cash you don't need, meaning you have emergency cash already, this is a good route), rather than investing in CDs. CDs have low rate of return and probably won't compensate for the inflation rate which I predict will happen because the banks have a lot of money stored up from the bailout money, low discount rates, not lent most of their money, etc. Inflation will happen. Do some research and invest in some stocks. Pick some defensive industries meaning companies that provides people with basic necessities.

If you have any questions or doubts of my suggestions, I'll be glad to corroborate it.

Online is better savings option. America Net Online bank pays 2% APY for amounts up to $35K.

Hi Im would say put it on real estate downpayment

I have always been under the impression that any savings plan at the age of 20 is a GOOD plan. I think it sounds fantastic and applaud you at your age and in college to have the foresight to do this. Good luck.

the idea to start splitting your money in different areas is the beginning... make sure you have complete control of where you can invest within an IRA... the more you learn about what to invest in the more options you'll discover... stay away from debt because it becomes counter productive to your long range plan