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I have a savings account that gets basically nothing in interest. Every quarter, I get $0.01 in interest on $500. I only keep it because I have a checking account and credit card with the same bank.
Would it be more prudent to just invest that in a bond ETF? What do total returns and transaction costs look like?
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>>1822093
Buy a CD from your bank. Free money, lower risk. $500 isn't shit to invest
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>>1822093
Buy bitcoins and hold, thank me later.
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>>1822093
Ally bank has 1% on savings accounts.
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>>1822093
Any passive savings account is going to be garbage, but it's risk free.
You'll probably get better returns by investing passively in an Index ETF like $SPY, but that money is harder to pull out (no option but to wait up to 7 days vs paying a small fee for savings withdrawals). Furthermore, while you can potentially multiply your returns 100 fold, you also gain an unlikely, but non-zero, risk of losing money.
If you don't NEED that money, i.e. you've got a separate emergency fund already, do the ETFs. Otherwise just leave it in savings.
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