Saved $1,000? Make These 5 Smart Money Moves

If you want your money to keep growing you can’t just let it sit in a savings account. The average annual percentage yield (APY) for a traditional savings account is 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. You can probably find more than that under your couch cushions.

Here are some better options to help you make the most of your savings.

1. Find a free account with a better rate

You might feel tied to your bank because it’s the only one you’ve ever used. But you can likely find an account with a better rate somewhere else, and switching over is easier than you might think.

And if you currently have your cash sitting in a checking or savings account, use a high-yield savings account instead. High-yield savings accounts pay substantially more than traditional savings accounts, giving the funds you deposit the chance to grow.

Not only will your savings grow much faster than in a normal savings account, but cash back on all of your normal purchases means you’ll have even more to save.

Take a look at some of today's high-yield savings account rates to see how they compare.

2. Start investing with only $5

You don't need millions of dollars lying around to be an investor.

Stash is an app that lets you invest in fractional shares of major companies, like Walmart, Amazon, and Google, which would typically run you thousands of dollars for a full share. You can buy in for as little as $1, and when these companies profit, so will you.

Let’s say you decided to invest your $1,000 with Stash at five bucks a week instead of keeping it in a regular savings account.

Based on an average growth rate of 5%, after three years you’d be up by more than $100. And if you kept it up for another 10 years, you’d be up by more than $1,400.

It only takes two minutes to open an account, and Stash will pay you a $5 sign-up bonus^{1 2} when you invest your first $5.

3. Stop wasting money on car insurance

Saving $1,000 won’t make much difference if you’re just going throw it all away on your car insurance.

You could be wasting up to $1,127 a year by not shopping around for a better car insurance rate every six months.

SmartFinancial can 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 over 200 insurance companies to find you the lowest 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.

4. Stay out of debt

If you’re paying sky-high interest on more than one credit card, $1,000 in savings probably won’t last too long.

But there’s an app called Tally that can free you from the hassle of managing multiple due dates and monthly minimums, and potentially save you thousands of dollars.

Tally keeps track of your billing schedule and makes your payments for you — on time, and in a way that minimizes the amount of interest you owe.