Best Places to Invest $1,000 Right Now

Top 7 Investment Options for Your $1,000

One of the most common questions new investors ask is where they should put their money so it can grow. When you've been diligently saving, you don't want that money to go to waste. Below, you'll find seven of the best places you can put that money. No single option is right for everyone -- it's all about choosing what's right for your current financial situation.

1. Paying off debt

Many people don't think of paying off debt as an investment, but it can be. It's an especially good idea to pay down high-interest debt, such as credit card debt. Credit cards currently have an average interest rate of 21.59%, according to the Federal Reserve.

2. An IRA

An individual retirement account helps you save for retirement while saving on taxes. You can buy almost any type of investment through an IRA, including stocks, bonds, and index funds.

3. A taxable brokerage account

It's generally recommended to fund retirement accounts first. Still, a taxable brokerage account is a good choice for an investment account without early withdrawal penalties.

4. An index fund

Index funds make it easy to build a diversified portfolio with low fees and minimal effort on your part.

5. A high-yield savings account

Some of the top high-yield savings accounts are offering 5% or more. This could be the best place for your money, especially if you don't have an emergency fund.

6. Treasury securities

You can earn a solid return on Treasury securities with no risk of losing money.

7. A CD

Certificates of deposit offer fixed interest rates within a set term.