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5 moves to make once you've got $1,000 in your bank account

by Chris Middleton

MoneyWise Editorial

Stack of cash
Nathan Dumlao/Unsplash

Saving up $1,000 is quite an accomplishment — don’t let anyone tell you otherwise.

But declaring victory and letting that money just sit in your savings account won’t do you any favors.

The average annual percentage yield (APY) for a normal savings account is just 0.06%, according to the FDIC. That means if you leave your $1,000 untouched, it’ll only earn $0.60 in interest over the course of a year.

Don’t let your money stagnate. Here are a few things you can do to make that money work for you, plus a few tips on helping you save for your next $1,000.

Add a little color to your investment portfolio

Most people have never even considered investing in art. Masterpieces by Warhol, Monet and Banksy might be ballooning in value, but they cost tens of millions — and you’ve got $1,000.

Things have changed. Even if you just have $20 to start, you’re able to invest in fine artwork from some of the greatest creators of our time.

Masterworks is the first company that gives you access to shares of artwork, just like owning shares in a company. It lets you bypass the hard parts of art collecting, so you can just enjoy the rewards.

Between 1995 and 2020, contemporary art outperformed the S&P 500 by 174% — that’s nearly three times the returns — according to the Citi Global Art Market chart.

Click here to request an invitation.

Stop overpaying for car insurance

Saving your next $1,000 will be a lot easier than the first if you stop throwing money away on overpriced insurance.

It's easy to set and forget these kinds of bills, but experts say you need to shop around every six months to ensure you're still getting the best deal.

SmartFinancial can help you find a lower rate on your current coverage in minutes.

Just answer a few quick questions about yourself, your car and your driving record, and SmartFinancial will instantly sort through more than 200 insurance companies to find you lower prices in your area.

Comparing car insurance rates with SmartFinancial is totally free, so even if you’re just curious, check it out and see how much you can save.

Get a quote today.

Get cash back for storing your money smarter

When was the last time you asked yourself what your debit card was doing for you? Traditional banks rarely offer you incentives to use your card — in fact, it’s more likely they’re dinging you with hidden fees.

With Aspiration, you get to choose how much you want to pay, even if that’s $0 a month. And if you need an extra service like a wire transfer, they will only charge you what it costs them to provide and not a penny more.

Aspiration has so much trust in its members that it will even send you your paycheck up to two days early.

Plus, depending on how much you want to pay for your account, Aspiration will give you 0.5%, 3%, 5%, even 10% cash back on purchases at sustainable businesses. That’s extra money you’re getting just by using Aspiration for all kinds of everyday purchases.

All you need to do to power up your debit card is sign up with your email and link your banking info to your new, free Aspiration account.

Click here to sign up.

Start investing with as little as $5

The first lesson many of us learn about money is that spare change adds up. But how can you take advantage of that when few people are using cash these days?

Even if you do most of your shopping online or with a card, you can make better use of your digital dimes and nickels.

Acorns is an investing service and savings tool rolled into one. When you make a purchase on your credit or debit card, Acorns automatically rounds up the price to the nearest dollar and places the excess — the coins that would wind up in your pocket if you were paying cash — into a smart investment portfolio.

Signing up for Acorns takes less than five minutes, and you can start saving automatically for just $3 a month. Plus, if you sign up with our special link, Acorns will add $10 to your account as soon as you make your first investment.

Click here to sign up and get your $10.