6 beginner investments to help grow your savings

6 beginner investments to help grow your savings

When it comes to saving for the future, knowing where to start can feel overwhelming or complicated. But if you start small, you’ll build confidence in your journey to financial growth. Let’s explore a few easy ways to begin investing, so you can pave the way toward a brighter future, including:

• High-yield savings accounts
• CDs
• Index funds
• ETFs
• Corporate demand notes
• Robo-advisers

High-yield savings accounts

High-yield savings accounts offer a safe, straightforward way to grow your money with minimal effort. They work like regular savings accounts but offer higher interest rates, allowing you to earn passive income on your savings while keeping your money secure and accessible.

Benefits of high-yield savings accounts include being FDIC-insured, so your money is protected, and flexible access, making them ideal for emergency funds or short-term goals, like vacations or large purchases.

Pro tip: Look for online banks with competitive interest rates, low fees and helpful digital tools to keep track of your progress.

Certificates of deposit (CDs)

If you’re looking for a very low-risk way to earn guaranteed returns, a certificate of deposit (CD) might be perfect for you. CDs allow you to lock in a fixed interest rate for a set amount of time, so your money grows without any extra effort.

Interest rates are typically higher than regular savings accounts, and your returns are predictable, with virtually no market risk. Since funds are locked in for a specific period, CDs are good for medium-term financial goals. Just make sure you won’t need access to them before the CD matures as early withdrawals can lead to penalties.

Index funds

Index funds are designed to match the performance of a specific market index, such as the S&P 500, offering broad exposure to the market. Instead of picking individual stocks, you get a little piece of lots of companies, making it easier to spread your money (and risk) across the market.

And because index funds typically don’t entail much in the way of management fees, they’re a cost-effective but still highly efficient investment. This makes them an attractive option for beginning investors.

Exchange-traded funds (ETFs)

Much like index funds, ETFs offer a simple way to invest in lots of companies at once. But ETFs give you more flexibility along the way. You can trade them throughout the day, just like stocks.

And like index funds, ETFs are cost-effective and easy to manage. It's one way newer investors can gain access to the benefits of a diversified portfolio without requiring a large upfront investment.

If you’re curious about hands-on investing, ETFs offer a way to learn the ropes without needing to manage a complicated portfolio.

Corporate demand notes

Demand notes, like GM Financial Right Notes^®1 are  debt securities that allow people to invest directly in a company. When you purchase these notes, you earn interest each month until the notes are redeemed. They’re called “demand notes” because you can redeem your notes at any time, giving you flexibility not typically seen with other investments.

These notes usually offer higher interest rates than standard savings accounts, making them an appealing option for growing your portfolio. However, it’s important to keep in mind that they’re not traditional savings accounts and are not insured by the FDIC. This means your money isn’t protected by government insurance, so there is a bit more risk involved.

Automated investment platforms (robo-advisers)

If you’re unsure about where to start, robo-advisers have your back. They use smart tools to design a custom investment plan based on your goals, whether that’s saving for retirement, financing a new vehicle or just growing small month-to-month savings. They can adjust your portfolio over time to match market changes. They typically charge lower fees than traditional financial advisers.

Many platforms even offer socially responsible investing options, so you can grow your money while making a positive impact.

Tips for starting to invest

Starting your investment journey doesn’t have to be intimidating. In fact, it’s all about building habits, not perfection. Focus on small steps today that will set you on the path to long-term financial success.

• It’s okay to begin with $10 or $20 a month.
• Automate your contributions: Make regular saving simple with automatic deposits. Many accounts, CDs and robo-advisers offer this feature.
• Explore helpful tools: GM Financial’s KEYS® program offers free resources to help you budget, save and uncover opportunities to invest.

Remember to manage your expectations. Investing is a marathon, not a sprint. Each type of investment comes with different levels of risk and potential rewards. That’s why diversifying your portfolio is key to long-term growth.

¹RightNotes.com are unsecured debt obligations of General Motors Financial Company, Inc. and are not guaranteed by General Motors Company. Right Notes do not constitute a savings, deposit or other bank account and are not insured by or subject to the protection of the Federal Deposit Insurance Corporation. Right Notes are not a money market fund, which are typically diversified funds consisting of short-term debt securities of many issuers, and therefore do not meet the diversification and investment quality standards set forth for money market funds by the Investment Company Act of 1940.

General Motors Financial Company, Inc. ("GM Financial") has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents GM Financial has filed with the SEC for more complete information about GM Financial and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov or by downloading them from the GM Financial Right Notes Web site at RightNotes.com. Alternatively, GM Financial will arrange to send you the prospectus if you request it by calling toll-free 1-844-556-1485.