Should I move my money from my savings account?

I am a 22-year-old student beginning my PhD next year. I have recently acquired ~$18,000 that I do not need at the moment. It is sitting in my savings account right now earning 4.25% interest. I am not planning on marrying or buying a house for at least another 5 years, but I would like the money to be somewhat available just in case things change. I am more concerned with ensuring that I don't lose money than with it growing significantly. Should I keep it in the savings account or look into mutual funds, stock market, etc? Canada Savings Bonds currently have a lower interest rate than my savings account, so that doesn't make sense to me. Thanks for your input.
Should I move my money from my savings account?
i would advise you to ladder it in to cd"s with expire dates of 12, 18, 24, 26, and 32 months that way should the need arise you will have a hunk of money coming in every 6 months and when they do come due if you do not need the money roll it over and if possible add to the investment!!!
Reply:The question is of a rhetorical kind. If only the one knows the correct answer :-) Your choice will depend on the level of risk you are ready to take.


My personal opinion although is that 5 years is not long enough for mutual fund unless you take a low risk package managed by bank. Such a package may not bring you more then your saving account though.


And as for 4%, keep in mind that inflation is around 2% and remaining 2.25% will bring you $405 - ~25% tax = $300. By keeping money on saving account you simply protect them from devaluation.
Reply:You could put it into CDs in chunks if the rates are higher than your savings account.





Find a savings/money market account that pays better interest. I know ING Direct is paying @5% right now.





If you don't mind risk and tax consequences than invest in low cost mutual funds, index funds or stocks.