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I am a college student and have $ 1000 dollars to invest. I could do up to two years, and would like a fixed rate interest-not really interested in stock market. How do I find out what the best interest rate is available to me? What are my best options and how do I go about investing in it? Thanks for any advice!

1 Thought on How best to invest $1000 in something that is fixed rate interest?
  1. Reply
    Alby
    June 10, 2011 at 12:19 am

    If you don’t want to risk your $ 1000, then I’d say buy a CD (Certificate of Deposit) from a local area Bank. Its backed by the FDIC, so if the bank fails, your money is covered.

    But if you go out and buy bonds as a fixed rate investment, you are putting your $ 1000 at risk to inflation. If inflation increases in the economy, the value of that bond will fall and so goes your $ 1000 investment. Yes you’ll still get your fixed rate yield, but what good is $ 50/yr for the next 2 years when your $ 1000 has eroded away to $ 800 or $ 600?

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