I am a 25-year-old muralist. I usually work for $21 per hour under someone else. However, I occasionally take a different approach and work on some of my own projects on my own. I just made $10,000 after taxes from the job I accomplished. I pay $700 a month in rent for an apartment with a roommate, plus an additional $300–400 for groceries and other expenses. With everything I’ve earned, what should I do?
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Hold it in a HYSA with an APY more than 4%. Check out Apple, Ally, Marcus, Discover, SoFi, and Ally among other banks.
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Those interest rates are looking incredibly attractive right now.
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With the expected Fed reduction, I would actually look into longer-term CDs, such as 12 months, or specialty CDs, such as 13 months; the HYSA rates will probably decrease. At minimum, you can temporarily fix the rate using the CD. In the event that you require the money sooner, simply accept the penalty or look for a no-penalty CD in certain locations if you must shut it earlier. You may compare with the aid of bankrate and nerdwallet.
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CDs might be a good option if you can afford to lock your money away for a year.
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My bank offers a 6-month CD with an interest rate of 5% I think. My question is, what happens after the CD term ends? Does the APR revert to a traditional savings account rate?
Currently, I don’t have a savings account; my money is just in a checking account.
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You lock in the rate as well as your money for that six months. If you are doing a CD, you should probably search for something higher than Wealthfront’s 5 percent Hysa.