5 Best Places to Put $10,000 Right Now

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Maybe you had a sudden windfall, or perhaps worked hard to grow your savings . Either way, you now have $10,000 to put, well, somewhere . But where?

Let's take a look at five different options for using that $10,000 in savings wisely.

1. Pay off any high-interest debt

If you have any high-interest debt -- credit cards, personal loans, etc. -- then the best place for a $10K windfall is probably paying off that debt. You will get no better return on that money, and you'll get the satisfaction of having less debt (or ideally none at all).

Consider it this way: Even when you play the long game, the stock market gives you an average return of about 10%. Compare that to the 20% (or more!) in interest on your typical credit card, and you come out way ahead just paying off that debt over pretty much any other investment.

2. Boost your retirement account

A Motley Fool study showed just 34% of people feel on track for retirement. If you're in the majority group, consider putting that extra $10,000 into your retirement account .

Oh, and if you're thinking, "What retirement account?" -- this one goes double for you.

3. Make a CD ladder

You can get some awesome rates on certificates of deposit (CDs ) these days, so a CD ladder could be a great way to go. With this method, you invest in a variety of CDs of different maturities. For example, you could put:

• $2,000 into a 1-year CD
• $2,000 into a 2-year CD
• $2,000 into a 3-year CD
• $2,000 into a 4-year CD
• $2,000 into a 5-year CD

With this setup, you have one CD that matures each year, giving you the option to take out your money and use it for something else. If you want to keep the ladder going, you reinvest in a new 5-year CD.

4. Keep it handy in a high-yield money market account

If you want to keep your $10,000 where you can use it if you need to -- say, if it's your emergency fund -- then a money market account is the way to go. The best money market accounts have comparable rates to a good CD or savings account. Plus they offer both an ATM card and check-writing abilities, so you can have easy access to your money whenever you need it.

5. Sock it away into a high-yield savings account

Folks stuck with an average savings account might want to pick another option -- or another bank. (The national average savings rate is a sad little 0.45.) But if you have one of the best high-yield savings accounts, then that's is a very reasonable place to keep your $10,000 in savings.

In particular, choose this option if your $10,000 is short-term or emergency savings. A good savings account will let you keep your money liquid while still earning a return.

Considerations for your choice

If you looked at these options and still aren't sure how to choose the best place, consider this:

• Do you need access to the money? If you may need access to that money sometime in the next year, this narrows your options down considerably. A money market or savings account may be your best option.
• What's the return? Paying off high-interest debt is almost always the best return on your money. After that, it can vary a lot based on the market and your risk tolerance.

Ultimately, the best place for your money will depend a lot on your specific needs and wants. Take the time to consider what will have the biggest positive impact on your finances overall, and make your decisions accordingly.

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