If you’re a beginning investor looking for ways to make your money grow, you’re not alone. Going it alone when learning to invest is a tried-and-true path. But everyone has to start investing money somewhere.
If you have cash on hand, it’s best to keep it in a checking account (and not under your mattress.) Much like the credit bureaus report how you handle credit, an organization called ChexSystems keeps track of how you handle checking accounts.
Most banks also offer savings accounts, which is an excellent place to put cash on hand you don’t want to spend (but aren’t quite ready to invest.) Like checking accounts, savings accounts likely won’t have competitive interest rates unless they are a designated high-yield savings account.
As of 2022, you will be able to save up to $20,500 per year (this limit increases by $6,500 if age 50 or older) in your 401k. Your employer also has the option to match some of these contributions if they want.