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Hello friends, I am currently pursuing my graduate studies (PhD) in MD. I can save around $400 every month from my stipend and I was wondering if you had any advice on where I might invest this small amount monthly for maximum returns. The savings account return rate is laughable at my banks (BofA & Chase). Any thoughts on this? I should probably also mention that I don't want to 'actively' invest in stocks as I cannot spare the time following them. Something with a reasonably minimum monthly effort would do. Thanks for the help! P.S: I went to the students section and that looked deserted by the last date anyone accessed/replied to a post there, so I'm posting this here.
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I'd hold off on investing till you're done with school and have a job. Just save the money for any unexpected expenses that may come up, e.g., medical expenses, laptop replacement/repair, unplanned trips/events with your friends etc. You won't be able to do much with $400 per month anyway.
Perhaps, you can see if there are any credit unions near you that you can join and open a savings account or a money market account there - the return may be significantly higher than in "normal" banks.
Things to keep in mind:
- transaction costs, bank fees, penalties for early withdrawals etc.
- liquidity/ability to cash out
- the higher the expected return, the higher the risk
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