Whats the best way to invest $2,500.00 and get more money back than a CD or regular saving account?

whats the best way to invest $2,500.00 and get more money back than a CD or regular saving account? So far I found Paypals money market account is 5.02+%....and I don't want to invest in stocks with this money.

Personally for me, I find that the Paypals mm is good, but I understand your fear in investing in stocks as they carry a lot of risk. But without a little bit of risk, no rewards, which is why I suggest you should get a mutual fund.

Mutual funds are a group of stocks picked by PROFESSIONAL money managers in which you or any other investor can buy. Because money from a lot of people are pooled together, you can afford to buy more stocks as a group than individually.

The good:
- Professionals manage your money, so less worry for you.
- Most banks offer these, quite reliable
- You can pick which ones to invest in, some safer ones would be "banks, grocery stores, electrical companies, telephone companies,..." Places or services that you use on a daily basis
- Pretty good returns

The bad:
- Like life, nothing is guaranteed, if someone guarantees you a return of 5%+ per annum, they are cheating you.

Do you have a business idea and a little time to build your own business from scratch? Whether you choose to start your own business with $2500 or get a few partners to invest equal sums, you can earn far more than a 5% return just with the tax savings alone. Use your skills, passions, hobbies, interests or life experiences to build a business that either fills or creates a need for a product or service and you will enjoy a long term investment that will pay your well for years and years to come. There are a number of people and organizations that can help you with business start up if this is the route you choose. When you invest in stocks you are investing in other's people but in your own business you are investing in yourself. Where do you think you can make more return???

I have been in Mutual Finds for 30 years and my advise is to go to Morningstar (on line) and find a good 5 star Mutual Fund. A good fund will average 8% over a 10 year period

I have one idea that might possibly appeal to you. Give it some thought anyway. GIM is a closed end mutual fund that invests in foreign debt instruments of government entities. It is traded like a stock and that is the symbol. The big advantage of such an investment is that you are insulated from the falling value of the dollar. 5 year annual return is about 15% much of that capital gains which is taxed at a lower tax rate. Pays interest monthly currently at 4.2 cents a share which sells at $9.53 a rate of about 5.3%. Of course if the dollar should turn around and appreciate against world currencies, not a very likely scenario in my opinion considering the current state of government, then this type of investment would not be so good.

There is one drawback. GIM currently sells at a premium to net assets of about 6% because it has performed so well.

http://www.etfconnect.com/select/fundpag...

Another of the same type is AWF. It currently sells at a discount to net assets and pays about 6.9% also monthly. But the quality of its holdings are not so good as GIM. Invests in paper of 3rd world countries. But the way the U S is going, a 3rd world country is a definite step up. 5 year annual return is 16%.