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HomeUncategorizedThe 3 Smartest Places to Put Your Money in September 2024

The 3 Smartest Places to Put Your Money in September 2024


Many people are struggling to make ends meet given the high cost of living. So if you have extra money in your budget, you’re in a good spot.

But keeping your cash in a shoebox under your bed isn’t going to help it grow. And you risk your child or cat raiding your stash while you’re not looking. Rather than do that, find a safe home for your money. Here are three options it pays to consider this September.

1. A savings account

A savings account is a great place to put money you have earmarked for emergency expenses. And since those can arise at any time, it’s a good idea to aim for enough cash to cover three to six months’ worth of bills. If you’re not there yet, that’s OK — just keep socking money away in the bank until you get there.

The nice thing about savings accounts is that they give you the flexibility to take withdrawals whenever you want. At the same time, you can earn interest on the money you’re putting away for unplanned bills. 

Savings accounts are currently paying pretty generously. If you don’t have one already, shop around for a good rate. But keep in mind that you’ll generally earn more interest with an online savings account than one at a brick-and-mortar bank. 

Online banks tend to have a lot less overhead than banks with physical branches. Because of this, they tend to offer more competitive interest rates on the money you’re safeguarding. 

2. A CD

Unlike a savings account, a CD doesn’t give you the flexibility to withdraw your cash on a whim. When you open a CD, you’re making a commitment to whatever term you sign up for, whether it’s six months, 12 months, or longer. Taking an early CD withdrawal could mean facing an expensive penalty.

However, if you’re all set with emergency savings and have extra money beyond that point, then putting your cash into a CD makes sense — especially now. With a CD, you’re guaranteed a certain interest rate on your money, whereas with a savings account, that interest rate can fluctuate.

Plus, CD rates are still sitting at or near record highs, but that could change soon. The Federal Reserve is expected to start cutting interest rates later this month. Once that happens, you may not get as good a deal on a CD as you can snag right now. It pays to capitalize on today’s outstanding rates while you can.

3. An IRA

A savings account is a great place to put an emergency fund, while a CD is a great place to house your money on a short-term basis. But if you’re ready to get serious about retirement savings, then an IRA is worth considering.

The nice thing about an IRA is that your contributions go in tax-free up to a certain limit set by the IRS each year. In 2024, that limit is $7,000 for workers under age 50 and $8,000 for those 50 and over. This means that if you make a $1,000 IRA contribution this month, you won’t pay taxes on $1,000 of your salary (as long as you’re below the income thresholds set by the IRS). 

Also, IRAs let you invest your money in stocks. So while you might score a 5% APY on a CD today or a 4% APY in a savings account, an IRA might help you grow your money by 10% a year, which is consistent with the stock market’s average return over the past 50 years.

If you have extra money on hand this September, you’re in a great position. But the next step is finding the right home for it so you can make the most of it. And these three options are definitely worth considering.



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