Investing your stimulus check means the potential to significantly grow your $1,200. With any form of investing there are risks involved, so keep a watchful eye on the market.
Low-risk investments like a certificate of deposit, or CD, have higher rates than a standard savings account, but you won’t have much access to your money once you put it in. CDs are federally insured with a fixed interest rate and maturity date. Credit unions offer share certificates that are insured through the National Credit Union Administration.
You could also look into investing in stocks. With stock prices down significantly due to the pandemic, now might be a good time to buy. This is still a bit of a risky option, however, as the market is extra volatile due to the Coronavirus. Buying shares of Netflix or Zoom seem like a good idea on paper, but as things slowly return to normal, shares of these companies may not go where you expect them to. MarketWatch has tips for buying and selling during the pandemic.