Where is the best place to keep my money?

I'm 15 and have a bit more than 400 dollars. I want to start saving it somewhere safe where it can also grow a tiny bit with interest.





There is a local credit union opening tomorrow, and I have the option with my amount of money to either wait until I have 500 dollars and get a certificate of deposit, or open a savings account. If I get a CD I don't want to keep it in there more than a year. They offer 6 month ones and 12 month ones (they have longer ones but I'm not interested in keeping the money there that long). The APY for the 6 month one is .75%, and the 12 month gets 1.15%. The 12 month one offers better APY but if I get the 6 month one I can wait until it's done and buy another 6 month one but add a couple hundred more dollars or so depending on what I have.





My other option is a savings account. The APY is .5% but I could continuously add money into it (I'm pretty sure that I can't do that with the CDs they offer), and withdraw money a limited amount of times if I had to.





I'm leaning towards the savings account because of the ability to add money to it continuously, and the money isn't completely tied down. I just wanted to get other peoples opinions.





Sorry about the large amount of writing.|||I have money from a maturing CD. I'm going to put it in a savings account because i feel the rates are too low for a cd,|||by an small safe and keep it in yor room hidden under your bed by like a pair of old jeans|||You're asking good, thoughtful questions. And choosing a credit union is a good move.





In general, CDs are good for people who are prepared to tie up their funds for the specified period of time. For general banking, where you will want to regularly add more or take money out, it's best to go with the savings account. By the way, at credit unions savings accounts are usually called "share accounts". Same thing--just another name.





Before you decide, however, speak to someone at the credit union. Some of them offer special accounts for folks under 18 years of age, with special benefits and rewards. Credit unions are big into financial education, and are extremely pleased to have teens set up accounts. One thing, though, is that you must have a parent or guardian with you when you set up your account. The same rule applies at banks. And, the parent or guardian must be with you when you withdraw money.|||Good job opening a bank account and choosing a credit union! I would start with a savings account. Find out the minimum balance required to avoid monthly fees - some banks charge a fee each month if the amount in the account is less than $___. These fees are more than the interest you earn, so it's not a good idea to have them. Also find out the maximum number of transactions allowed each month without a fee - some only allow 3, so you wouldn't want to make 4 deposits. If the minimum for the savings account is $100 and the minimum for the CD is $500, make it a goal to get $600 in the savings account before you transfer money to a CD. And then make sure you can go without that money for 6 months.|||Congratulations on making a wise decision to open a savings account. It is the first step in taking responsibility for your finances and accumulating wealth. You are very smart to do this at a young age because you'll be able to benefit from compounding interest over a longer period of time than most of your peers.





Regarding your questions about opening a CD, I encourage you to talk with someone at the credit union and find out how their CDs work. Some credit unions have CDs that let people add money to even though the original certificate has not matured, so you might be able to get a higher rate of return AND add to your deposit.





Also, since you are under age 18, you could qualify for a youth account. Some credit unions offer accounts for young people that have better interest rates and lower minimum deposits. Again, ask a member service representative at the credit union for details.





Hope this helps. Good luck.|||Honestly all banks are technically businesses and businesses have to make money to survive, Your Money! I know it seems unrealistic but the other person who answered this is correct. If you actually want to save money then save it in its physical form. My grandfather is 78 and his bank is a whole in the floor, They are full of fine print and slander. Every time you make a mistake or withdraw insufficient funds they lick their fingers, laugh and start counting. I personally use a local federal credit union which has the best percentage rates and they actually inform me when I make mistakes unlike say Bank of America or Regions. Large banks are practically mobs with support from the government.|||Hi Preston I was your age when I opened my first bank account with $500 (which was a savings account) I have also had a certificate of deposit for a 6 month term, which ended recently.





Personally I would go with the savings account just for my own peace of mind, incase I did need to withdraw money in case of an emergency. Thats not an option with the other.





Remember you can always get a certificate of deposit later on, by then you would have the 500 dollars





Also, like you said you still earn interest on the savings account (.5%) %26amp; you can continue to add money into the account, which will increase the amount of interest you recieve on your savings.





Its really nice to see someone your age interested in saving not spending, I wish you all the wealth in the world :)