Financial Advice: What is the best short term investment for $1000?

I just got A little over $1400 in checks and bonds from a scholarship. $500 dollars is in a check, and.$900 is in I-Bonds purchased in 2001-2002. I'm going do so something $400 of that check money, and invest the rest. The $900 in bonds has accumulated an extra $100 in interest, I was told. So that plus the extra $100 in interest makes about $1100 to invest.

I start college in the fall, and I need an investment that will protect all the money I have now, as well as earn interest. I need something that won't block my access to the money for more than 5 months at least, so that I can use it in college if my money gets a little tight.

I was thinking about putting it in a MMA or a CD, because I learned in school that it was a good investment. I was also thinking about keeping the bonds, but isn't it possible that the money I have and the interest I have will depreciate?

I'm a member of Envision CU so refer to envisioncu.com because I would prefer to do business with them.

A CD would be your best bet by far, except for one thing: you will have limited (if any) access to your money until the CD matures.

Usually the shortest term for a CD is 6 months, but check with your CU to see if they have any shorter. If not, try to budget so that you can keep the CD for the six months.

A distant second option is a money market account. That rate will be better than a regular savings account, but not as good as a CD. Also check with your CU about that, because often any premium rate you get there may be dependent on a minimum balance (like $1,000).

I hope that helps. Good luck!

look cd's pay low interest- 3 to 5 %

why not just put it in high yield savings at 5% with emigrantdirect.com, INGdirect.com, or capitalonesavings...this way you have access to the money when you need it and are making the same interest as a CD

also consider opening a scottrade account and putting it in a couple of stocks for a more risky investment- $500 opens an account- www.scottrade.com

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Open a savings account with Emigrant Direct online. It's currently paying 5.05% APY which is competitive with any short term Cd and beats most money markets out there. You also have great liquidity and can move transfer the money in and out of your checking account in a matter of just a few days.

Since this is a SHORT-TERM investment (you need the money within the next 3 years), Money Market account or CDs are your best alternative.

Just remember with a CD the money is locked up for a period, so if that isn't flexible enough for you, then stick with a money market account.

In either case shop arround for the best short term interest rates for Money markets and CD. And also look out for minimum investment for some Money Markets. That could also affect your decision.

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