Many don’t invest because they feel like they can’t afford to, not to mention feeling overwhelmed by choosing an investment vehicle. However, there are options that can make your money work for you, and they just might be simpler than you expected.
Whether you have $10,000 (or much less) in the bank, here are 10 investment options to consider:
Mutual funds and exchange-traded funds (ETFs) function similarly but also have some key differences when it comes to how you use them.
A mutual fund is an effective way to outsource your investment money to a team of professionals. They’ll spread out your investments across a diverse portfolio of stocks, bonds and more. Though they’ll make their recommendations based on your age and the amount of money you’re able to invest, you’ll decide how much risk you want to incorporate into your investment strategy.
Mutual funds can be a great vehicle for investors who are just beginning their journey, as most of the strategy is handled by the money managers while you earn passive income. Although there are mutual funds with no minimums, most mutual funds require a minimum investment of generally $500 to $5,000, depending on the manager and service.
Exchange-traded funds give you slightly more autonomy and agility with your investments. While mutual funds stay locked until the end of trading hours, ETFs allow you to buy and sell stocks throughout the day. This allows you the flexibility of individual securities while also granting you the diversity of a professionally managed portfolio. There are also some tax benefits for ETFs compared to mutual funds.
For those wanting a more hands-on experience with their investment, ETFs are a great way to start. Unlike mutual funds, there is no minimum dollar amount to begin. Instead, you just need to purchase at least one stock.
CD stands for certificate of deposit. It’s a savings product that’s similar to a savings account, but it allows you to earn on investments more aggressively. You’ll invest a set amount; the CD will lock; and you won’t be able to access those funds (without penalty) until a previously chosen, fixed amount of time has passed. This makes a CD another method for passive income.
While you might not earn as quickly with a CD as you would with a mutual fund or ETF, CDs may be more suited to those who are risk averse. If you aren’t in hurry to earn, and you value stability, CDs may be a valuable asset to you as a new investor. Plus, most only require $500 to $1,000 to start, making CDs a viable option for many beginners.
Interested in a CD? Learn how to get started with AAA.
See your optionsFor those who want to expand beyond publicly traded stocks or mutual funds, a real estate investment trust (REIT) might be the way to go.
REITs are companies that own real estate ranging from malls and apartment buildings to hotels and more. There are generally three types to choose from:
If you’re interested in starting an REIT, expect to need at least $1,000 to $2,500 for the investment.
A money market account is essentially the combination of a checking account and a savings account. But unlike most checking and savings accounts, money market accounts typically require higher minimum balances.
A money market account functions much like a savings account in that you can earn interest, but the benefit is that the interest rates are generally higher for money market accounts than they are for savings accounts. The more money you’re able to put in, the more interest you’re qualified to earn. A money market account also allows you quick access to your funds, much like a checking account does.
Start earning today with a money market account.
See AAA’s optionsWith Roth IRAs, the options are nearly unlimited, providing an exciting entrance into the investment world. On its own, a Roth IRA is really just a standard savings account, but you add value to it with the type of investment you chose to put inside of it.
You could put real estate, stocks, bonds, gold, cryptocurrency or more into it and begin earning for retirement. You can open a Roth IRA at any age, though you should speak with a financial advisor about how much to contribute, as there are limits based on your marital status and annual income.
If you meet the requirements for a qualified withdrawal, you can make tax-free withdrawals from your contributions with no penalty. Consult with your financial advisor before doing so, as it may be beneficial to leave that money in the Roth IRA for future earning potential. It all depends on your stage of life and personal needs at the moment.
Another reason a Roth IRA is a great for investment option for beginners is that there is no minimum amount required to get one started.
If you have money invested in the market, then you’ll want to have other accounts to fulfill your more immediate goals as your portfolio appreciates in value. A high-yield savings account is an effective way to do this. While traditional savings accounts tend to have lower interest rates, high-yield savings accounts are structured with more earning power.
Most high-yield savings accounts are available through online banks. These banks take the money that would otherwise be spent on a brick-and-mortar location and allocate it to their customers. This is how the interest rates are able to perform more favorably for account holders.
There is generally no set minimum amount to start a high-yield savings account, so you can base your deposits on monthly living expenses. Depending on your goals, you could deposit one to three months’ worth of living expenses and then see the return on your investment.
A brokerage account is an investment account in which you can invest in stocks, bonds, mutual funds and other financial tools to save for short-, mid- or long-term goals. This makes them advantageous for a wider range of goals than just retirement, whether those might be saving for a down payment on a house, paying off student loans, saving for family growth, saving for a wedding or more.
Another benefit is that you don’t have to wait until you retire to access these funds, and you can make as many withdrawals as needed. But remember that this money will be taxed, unlike the funds in a Roth IRA.
Fractional shares can be a great way to enter the investment world. They allow you to purchase a fraction of a share, rather than a whole one, resulting in a fraction of the cost.
You will have to buy and sell through a major brokerage, but the low cost will give you some flexibility as you learn what kinds of stocks you may want to invest in based on your interests, goals and bandwidth.
However, new investors should be mindful of how many fractional shares they’re managing. If the investment is a loss, it can feel minor. But, over time, those small losses add up. By the same token, small gains can also add up and help you develop a robust portfolio.
When considering a financial strategy, you may want to think about investing in several different vehicles. As you’re brainstorming, ask yourself these questions:
Connect with a professional to discuss CDs, money market accounts and more.
This information is being provided for general informational purposes only. The Auto Club Group does not assume any liability in connection with providing this information.
Annual Percentage Rate (APR)
We may change APRs, fees, and other Account terms in the future based on your experience with ACG Card Services and its affiliates as provided under the Cardmember Agreement and applicable law.
1Cash back can be redeemed in the form of a statement credit or ACH deposit ($25 cash back minimum redemption). Cash back is not earned on business related transactions or activities. You may not redeem cash back, and you will immediately lose all of your cash back, if your account is closed to future transactions (including, but not limited to, due to Program misuse, failure to pay, bankruptcy, or death). Cash back will expire at 11:00 p.m. Central Time on the last day of the calendar quarter that is five (5) years from the date on which they are earned. Account must be open and in good standing to earn and redeem rewards and benefits. Upon approval, please refer to your Cardmember Agreement for additional information. Cash back is earned on eligible net purchases. Net purchases are purchases minus credits and returns. Not all transactions are eligible to earn cash back, such as Advances, Balance Transfers, and Convenience Checks and other advance transactions as defined in the Cardmember Agreement, as well as interest charges and fees do not qualify. U.S. Bank cannot control how merchants classify their business or transactions and reserves the right to determine which Purchases will qualify in which category. Earn 2% per dollar for qualifying net purchases made with the card through any participating AAA Club when AAA is the merchant of record, on qualifying net insurance purchases (MCC = 6300) and at eligible retail travel merchants. AAA Clubs located in Northern California, Nevada and Utah are not participating AAA Clubs and purchases made at those clubs will not qualify for 2%. Earn 4% per dollar for qualifying net purchases on AAA purchases, travel and insurance for your first 6 months up to $6,000. After that, earn cash back in the standard 2% category. Foreign Transaction Fee: None.
2 Benefits are subject to terms, conditions, and limitations on the amount of coverage. Travel and Emergency Assistance Services help in coordinating medical, legal and travel services while away from home. Rental Collision Damage Waiver coverage and peace of mind for damage due to collision or theft of most rental cars. Certain terms and conditions apply. Please refer to your Visa Guide to Benefits for details
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†Annual Percentage Rate (APR). Auto Loans. Rates and terms effective as of 3/7/2025. APR is accurate as of 3/7/2025. Advertised rates and terms are subject to change without prior notice. Additional terms and restrictions may apply. Other loan rates available. Subject to borrower qualification. Advertised rate includes a 0.25% discount when you set up automatic payments from any checking or savings account. Rate is variable. Offer valid on personal vehicle loans only. Criteria to receive the stated APR: Loan term 48 months or less new or used, model years 2019 – 2025 with a credit score of 720 or higher based on the Vantage scoring model. Buyer is responsible for all state or local fees. AAA Banking uses a managed credit program, and final APR is dependent on your credit score. An auto loan with an APR of 5.24% for a $20,000 loan at a term of 48 months, your estimated monthly payment would be $463. An auto loan with an APR of 5.49% for a $20,000 loan at a term of 48 months, your estimated payment would be $465. Private party sales will not be financed. Auto loans are offered by Grasshopper Bank, N.A. Member FDIC.
††Annual Percentage Rate (APR). RV Loans. Rates and terms effective as of 3/7/2025. APR is accurate as of 3/7/2025. Advertised rates and terms are subject to change without prior notice. Additional terms and restrictions may apply. Other loan rates available. Subject to borrower qualification. Advertised rate includes a 0.25% discount when you set up automatic payments from any checking or savings account. Rate is variable. Criteria to receive the stated APR : Loan term 48 months or less, $5,000 minimum loan amount, model years 2023-2025, with a credit score of 720 or higher based on the Vantage scoring model. Buyer is responsible for all state or local fees. AAA Banking uses a managed credit program, and final APR is dependent on your credit score. An RV loan with an APR of 7.49% for a $35,000 loan at a term of 48 months, your estimated monthly payment would be $846. An RV loan with an APR of 7.74% for a $35,000 loan at a term of 48 months, your estimated monthly payment would be $850. RV loans are offered by Grasshopper Bank, N.A. Member FDIC.
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The figures entered on the input page of this calculator are for hypothetical purposes only. You should enter figures that are appropriate to your individual situation. The results provided by this calculator are also intended for illustrative purposes only and accuracy is not guaranteed. This calculator is not intended to offer any tax, legal, financial or investment advice and does not assure the availability of or your eligibility for any specific product offered, nor does this calculator predict or guarantee the actual results of any product. The terms and conditions of products offered will differ and may affect the results of the calculator. Please consult with qualified professionals to discuss your situation. The final APR may differ from the APR in the above results due to additional fees that may be applicable.
3Triple Advantage Savings Annual Percentage Yield (APY) is accurate as of 4/1/2025. The minimum amount to open an account is $100.00. Triple Advantage Savings Account Holders can earn the following Annual Percentage Yield (APY): 3.50% APY with Eligible AAA Membership and 3.15% APY without eligible AAA membership.* Deposit products are offered by Grasshopper Bank, N.A. Member FDIC.
4Triple Advantage Savings account holders with a monthly average balance of $25,000.00 or greater receive free outgoing domestic wire transfers. Triple Advantage Savings account holders with a monthly average balance of $24,999.99 or less will be charged a $10 fee for each domestic outgoing wire transfer.
5Triple Advantage Certificate of Deposit (CD) Annual Percentage Yield (APY) is accurate as of 4/14/2025. The minimum deposit to open an account is $500. 4.25% APY applies to a 6-month CD with balances of $500.00 and up. 4.20% APY applies to a 9-month CD with balances of $500.00 and up. 4.10% APY applies to a 12-month CD with balances of $500.00 and up. 3.95% APY applies to an 18-month CD with balances of $500.00 and up. 3.75% APY applies to a 24-month CD with balances of $500.00 and up. 3.50% APY applies to a 36, 48, and 60-month CD with balances of $500.00 and up. CDs are opened and interest begins on the day the funding deposit is received. The interest rate and APY are fixed for the term of the CD. The APY assumes interest remains on deposit until maturity. Withdrawal of interest before maturity will reduce earnings. A penalty may be imposed for early withdrawal. Fees may reduce earnings on the account. Deposit products are offered by Grasshopper Bank, N.A. Member FDIC.
Early Withdrawal Penalties
An early withdrawal penalty will apply if you withdraw funds before the maturity date. For terms of 6 to 12 months, the penalty is 90 days of interest. For terms of 13 to 60 months, the penalty is 180 days of interest. In accordance with Regulation D, a minimum penalty of 7 days’ simple interest will apply to withdrawals made within 6 days of deposit or within 6 days of a previous withdrawal.
6Triple Advantage Checking Annual Percentage Yield (APY) is accurate as of 4/1/2025. The minimum amount to open an account is $100.00. Triple Advantage Checking Account Holders can earn the following Annual Percentage Yield (APY): 1.00% APY with eligible AAA membership and 0.75% APY without eligible AAA membership.* Deposit products are offered by Grasshopper Bank, N.A. Member FDIC.
7Cash Back rewards offer 1.00% cash back on all qualified purchases made by eligible Triple Advantage Checking account holders with an eligible AAA membership.* To qualify for cash back, Triple Advantage Checking account holders must meet all requirements and a transaction must be deemed as a qualified purchase.
Qualified purchases are signature-based purchases made with a AAA Banking debit card from a Triple Advantage Checking Account. To make a signature-based purchase, select “credit” rather than debit at point-of-sale kiosks. The “credit” option is most often pre-selected when making purchases online using a debit card. Online subscription payments may not be considered signature-based purchases. The payment transaction type (signature-based or other) is ultimately decided by the merchant and how the transaction is transmitted to AAA Banking at the time of processing. AAA Banking reserves the right to determine if a transaction was a qualified purchase, and to establish additional types of qualified purchases that could be made available in a variety of ways. Any goods or services purchased with the debit card that are returned or otherwise credited to the account are not qualified purchases. Unlawful purchases and purchases of currency, cash or cash equivalents (including, without limitation, currency from the U.S. Mint, travelers cheques, gift cards, cryptocurrency, casino chips, peer-to-peer payments, prepaid debit cards, account openings, loan payments, or other cash equivalents) made with a debit card are not qualified purchases. Documentation may be required to validate that certain purchases are qualified purchases. If you or AAA Banking closes the account for any reason before the end of the statement cycle, you will forfeit all rewards accrued through your linked debit card during that statement cycle. The AAA Banking Visa® debit card is issued by Grasshopper Bank, N.A. pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa is accepted.
Important Tax Information
The value of this reward may constitute taxable income and may be reported to the Internal Revenue Service as miscellaneous income to the first signer on the account, in the year received, as required by applicable law. Offer is limited to clients who are citizens of the United States that furnish or have a valid Form W-9 on file and the account must not be subject to backup withholding.You may be issued an Internal Revenue Service Form 1099 (or other appropriate form) to you that reflects the value of such reward. Please consult your tax adviser, as AAA Banking does not provide tax advice.
*Eligible AAA Membership Definition: you must be a "Basic," "Plus," or "Premier" member of AAA - The Auto Club Group (ACG). ACG serves households in Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Michigan, Minnesota, Nebraska, New York, North Carolina, North Dakota, South Carolina, Tennessee and Wisconsin. Applicants must be 18+ and a U.S. resident. Other AAA memberships are not eligible.
AAA-Member Verification & Product Eligibility
By applying for a AAA Banking deposit account, you acknowledge and agree that if you select a AAA-member product, your AAA membership status with Auto Club Group (ACG) will be validated at the time of account opening and periodically thereafter. If your AAA membership cannot be validated or your membership status changes, your account may be moved to a non-member product with different terms, including but not limited to a lower Annual Percentage Yield (APY) and the removal of other AAA member-only benefits. If this occurs, you will receive a notification regarding the change in the product and applicable terms. If you believe your AAA Membership status was incorrectly validated or that you have been placed in the incorrect product, please contact us to review and correct your status.
Products are offered by Grasshopper Bank, N.A.. Equal Credit Opportunity Lender.
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