Money experts! What is the best option for saving money?

I agree. Put it in a money market fund. You can find them with any major Mutual fund Family. These are very safe ivestments funds that gain around 5 percent annually. You will be able to access the money without any penalties. And these will gain a much higher interest rate than a regular bank account.

401k & IRA are long term retirement investments. you will be penallized 10 percent plus taxes for early withdraws. Not a good option for your situation.

Mutual funds are great 5-10 year investments. But it doesn't sound like this is what your looking for.

1. A Traditional IRA is an investment account:

Similiar to a checking or savings. There are limits and restrictions to when you can access the funds.

However, a ROTH IRA allows you to remove 100% of your contribution (principal), the following year. This is post-tax monies, so there is more flexibility. But you would typically place the monies into your IRA account, and within a mutual fund or stock.

It doesn't sound like your too familiar with investing. So I would recommend just getting your feet wet. What I mean by this, is stop off at your local bank or credit union, and ask about there savings account and money market rates. See if there is any promotion, or enhancement for a $3,000.00 deposit. A money market is similiar to a savings account.

1. The monies is held in units, similiar to a mutual fund or I guess you could say stock. But, it is safe.

2. Because they are held in units. There might be a 24 hour waiting period before you can withdraw the funds you need.

3. But, these types of accounts seem to pay the highest interest to you, without being locked up long term.

The reason I say a local banking institution is so that you can drive by it once and awhile, and see that the bank is still around.

I would then speak with a banking representative, and ask them for some information on opening an account. Review the application and information, and go with the bank that you felt most comfortable with. There are people on staff that will help you with the paperwork, and answer any questions you have.

The monies placed into a savings, checking or money market account is FDIC insured. So if anything at all should happen, you money will never disappear. Unless you are the one spending it.

Good luck, and congratulations on the first step.

I work for a bank, and we deal with a lot of options for your money. Depending on some different factors is how you're going to want to invest it. The factors are pretty simple: Your age, what you plan on doing with it(if anything), what type of interest rate you're looking for, etc.

If you are under 21 years of age, you are by law not allowed to have a 401k, and I believe the same for an IRA, because you are more likely to need the money, and should be in college going towards your future career.

Also, putting it in an IRA is not a good idea if you are younger, because an IRA is meant for retirement, so it goes in and is tax free until you take it out. Once you take it out, you will be charged the federal rate of interest, as well as your state's rate of interest on income.

If you want it to be liquid, meaning it stays for the most part available, then I would suggest a regular savings account, or a short-term CD of 13 months or less. The trick with CD's is that if you withdraw any amount of the principal balance that you put in there, then you will be penalized a certain amount of interest that would have been earned.

Typically, at least in my area of the country, a CD under 12 months gets penalized 3 months of interest for early withdrawal, and anything 12 months or longer gets penalized 6 months of interest.

If you think you're going to need the money for something down the road, then I suggest a regular savings account, or an ING account online. The ING accounts are like regular accounts, only they earn a higher interest rate, and you need to have a real account set up at a bank in order to transfer the money from.

Your other option is to look into what banks in your area have investment specialists. I would avoid the larger banks like Bank of America, Sovreign, Citizen's, etc. and go with the smaller community banks. They could have an investment person there, and they are more personable and direct with you. A good investment person will sit you down to talk about your options and if he or she doesn't think they can help you with what you need, they will direct you to someone in the branch who can help you open up a regular account.

Hope that helps. Any questions, you can message me.

Based on what you say, you don't want an IRA or CD. Both of these have limits to having to keep it in for a set time. IRAs, and Roths, are meant to wait until you retire, somewhere in your 60s. You can expect a penalty, if you withdraw, early. A CD is a shorter term investement, either for a few months, or a few years; again, penalties for early withdrawl. Stocks (either through a direct buy, or DRP, aka Direct Reinvestment Plans), and bonds, are also meant to be long-term. T-Bonds/Notes are also similar.

Your best bet is either a High Yield Savings Account, Or Money Market. I strongly suggest some of the following links, esp bankrate, to compare how these, and similar things pay out. Motely fool also has some "fast tips in 60 seconds."

Money Markey is the best way to go. You should be able to get close to a 6% interest rate and with $3,000 you should only have to lock in for 1 - 6 months. Keep in mind that it takes time for money to make money so you would need to at least not touch it for a year. I would suggest mutual funds, which can be fairly safe, but not in the current market or economy. If you still have money and things get better in a few years, go with that. You could have as much as a 12 to 15% return on the year!

Just open a savings account and add to it every month or when ever you get paid. My wife and I have been doing it for 35 years.

a reductions account AND DONT touch IT thats what imma do each and each paycheck you get take 10% and positioned it in there I truthfully have kin that did that there in there 40s and have already got over 3 hundred thousand funds stored up have confidence me its completely properly worth it in the tip u choose for to stay someplace severe high quality at that age or whilst u get waiting to retire or purely circulate on holiday or something

not spending it :) lol jk i dont know...