"Best" thing to do for a student with $3,000

[SkeptiKal12]

So I saved up some money from this semester and need something to do with it (have a seperate 'spending' account). Currently its sitting in my chequing account (TD Bank).

Its not a large sum of money by any means and the interest on it, when I put in a savings account, would be minimal.

I guess I would like for it to grow as fast as possible in the shortest amount of time, but thats unrealistic.

Any suggestions?

[AlexH]

ING Direct saving account or short term GIC?

[rfdrfd]

#1) Put it into a high interest savings account right now; ING or ICICICICIC

#2) to make money fast, perhaps invest it into stocks. Start researching and watching financial TV shows. Like www.ROBTV.com , you can follow their guest picks if you like or if you are crazy and adventurous, follow Jim Cramer's picks on Mad Money (www.thestreet.com)

Of cousre, when you play stocks, its like going to Casino Rama. You can win, but you can lose just as fast.

#3) this is slower, but you can invest into mutual funds. Not sure if many will let you buy on $3000. Most need minimum $5000 initial purchase.

[Sylvestre]

assuming you need the money for school, and that's about 4-5 months from now, just play it safe. as someone else said, short term GIC.
Stay away from high risk investments, (unless you don't need the money for school.)

[chococrazy]

#3) this is slower, but you can invest into mutual funds. Not sure if many will let you buy on $3000. Most need minimum $5000 initial purchase.

Probably depends on what mutual fund company you are used to. I would say that it is more common to have a minimum initial purchase of $500. So you would have enough to purchase mutual funds.

However, you have to look at how much risk you are willing to take, and also when you would need to use that money. If you -need- that money for something, (e.g. tuition next year) then perhaps a safer vehicle like a savings account or a short term GIC would be better.

[djcyanide]

You could go for market linked GICs, or no load mutual funds

[imnew]

Safe!!!!!!

If the funds are for you tuition fees, I would play safe and get short term GIC. I wouldn't purchase mutual funds, there is NO guarantee with them or stocks. Anyone who tells you otherwise is BS...... (Done that and been there.... with OSAP)

Have fun with your study...

[Nyte]

IF you can afford to lose it (or at least a good chunk of it), then buy stocks. Whether or not you need it for school next year, take a look at whether you will have another source of money if you don't have enough, and how easy(or hard) it will be for you to make it back if things don't go well.

If you can't take the risk, then do as everyone else said and stick it in a GIC.

[illusion81]

Best bet would probably be the 3 month ING GIC

[gei]

Not really any point investing in a GIC. The most you'll make in a whole year is around $100.

Try some stocks/mutual funds. Or just leave it in a high interest savings account.

[Sylvestre]

Not really any point investing in a GIC. The most you'll make in a whole year is around $100.

Try some stocks/mutual funds. Or just leave it in a high interest savings account.

uh, how can you say GICs are not worth it yet say high interest savings are? short term GICs still pay higher than most high interest accounts.

[hyperion]

High risk stocks, you are young and can afford to lose that money. Making money wouldn't be bad either though.

[john widow]

$100 from GIC, not much.....for a whole year, but it is something. You should buy a laptop so you can RFD at school and help advertise. Start an RRSP so you can retire with money. Yeah......I guess investing in stocks/mutual funds etc...is the best way to get most return...What bank should you do this mutual funds stocks etc..with? I would like to know too.

[Tharyn]

uh, how can you say GICs are not worth it yet say high interest savings are? short term GICs still pay higher than most high interest accounts.


I'm in a similar situation as the OP, and frankly keeping my cash in my PC Financial Savings yields about the same amount of gain as a 1 year GIC. (There's actually a difference of $40 more for the GIC), There isn't much of a point locking in my cash in a GIC for a year when I can just keep it in my Savings account and always have it accessible.

Right now PCF's Savings account has 2.9% and that works for me. That's a .1% difference from ING right now. Also for a PCF GIC for 1 year they're at about 3.85% per annum.

Either way, to the OP, I just suggest you open up either a ING Savings account or a PC Financial Interest-First Saving's account and just keep your cash in there.

Then again this route only makes sense if you can't afford to lose your cash and it's only a short-term investment.

--Mark

[john widow]

Achieva financial at 3.5% for savings.

[hotwings]

...What bank should you do this mutual funds stocks etc..with? I would like to know too.

for mutual funds...
start by determining your asset allocation based on your risk tolerance and years until retirement. then head over to www.globefund.com or www.morningstar.ca and find the best mutual funds based on the asset class you're looking for. all the big banks have a great number of mutual fund selection but not all of them are the best performers. so imo, buy the best mutual fund for each of the asset class you're looking for.

[hotwings]

I think GICs would be the best bet for the original poster. Stocks are probably too risky for the individual with no experience in investing. A no-load conservative balance mutual fund might be worth a look.

[shoprider]

I'd go with a short term deposit or GIC like everyone else is recommending. You won't make a lot but at least the money isn't just sitting there and there's no risk.

What I would do is apply for student loans too. Even if you don't need the money, student loans have no interest while you're in school and you don't have to make payments until you stop going, so take out a student loan even if you don't need one and put it into a short term deposit. I think ING Direct has the highest rate at around 3% or 4% right now. Haven't checked in awhile but anyway, collect the interest, pay everything back when you graduate, and you've made a few hundred bucks.

Easy money.

[gei]

uh, how can you say GICs are not worth it yet say high interest savings are? short term GICs still pay higher than most high interest accounts.

Because it's not worth it.

If he chooses to lock that $3000 into a short term GIC with ING direct for 90 days, he will make an extra $3.75 over just leaving it in a regular ING direct savings account. I would rather pay the extra four bucks and have access to my money.

[ALsat]

Because it's not worth it.

If he chooses to lock that $3000 into a short term GIC with ING direct for 90 days, he will make an extra $3.75 over just leaving it in a regular ING direct savings account. I would rather pay the extra four bucks and have access to my money.

Where I live, $3.75 covers the bus fare, plus a can of pop if you can get it cheap. Hey a free bus ride and a drink... Most RFDers would consider this a good deal. :D

[chococrazy]

High risk stocks, you are young and can afford to lose that money. Making money wouldn't be bad either though.
How do you know what the OP can and can't afford?

[15-20_God]

How do you know what the OP can and can't afford?

because everyone in the finance forum loves to give advice about things they don't know anything about.

[hyperion]

How do you know what the OP can and can't afford?

It's a relative comparison and a generalization. As you get older, you have more bills to pay and have to invest in lower risk investments.

[15-20_God]

As you get older, you have more bills to pay and have to invest in lower risk investments.

its a generalization that doesn't apply to everybody, otherwise everyone would be holding identical portfolios.

[blink]

For this kind of scenario, I like Citizen's Bank 1-yr cashable GIC... it is 3.5% and it is only locked in for 30 days.. if you don't take it out, it can stay at that rate for 1 year, but after after 30 days you can take it out, renew it, etc whenever without any penalties.

It beats ING where you need a 90-day GIC for 3.5%.

[SkeptiKal12]

Wow, lots of good responses! Sorry for the lack of feedback.

I am still a student and have the tution for next year paid for (so I don't need the money for that). I also have a seperate spending budget that I use for everyday things such as clothes/food/entertainment/what not, and wouldn't really NEED to access the money (but would like that option should I choose to buy something big down the road).

My job pays pretty well so I can, potentially, afford to lose some money (but who likes losing?). Then again being out $3,000 no matter how much you make isn't my idea of fun.

I have some (read: very little) experience with mutual funds, where I was depositing a portion of my paycheck bi-weekly. I ended up losing some money this way and got a bit turned off by it.

So I am looking at potentially 'making' ~$100 over a year? Would that be a realistic figure?

[cihanlee]

in my opinion, even though i dont like to go with the gic since you seem young however, if you are consevative you can put your money in a short term gic account. but my other alternative would be to go with some mutual funds, that seem stable, should look into some of the rbc's mutual funds. Anyways, this is the best way to go, since you only got 3000.

[nouse8]

So I am looking at potentially 'making' ~$100 over a year? Would that be a realistic figure?

yes, that is just 3.33333333333%

[john widow]

What about reading those "poker secret" books? And then going to a casino and risking all your money. I mean, isn't is possible to risk your $3000 and come home with $100 000?....is that just in the movies or you can do it, but u must be wise and be lucky too?

[Nyte]

What about reading those "poker secret" books? And then going to a casino and risking all your money. I mean, isn't is possible to risk your $3000 and come home with $100 000?....is that just in the movies or you can do it, but u must be wise and be lucky too?

Sure you can, put that $3000 on a single number in roulette, if it comes up, you get $105 000, otherwise, you get nothing.