Ten thousand dollars is a good place to start if you are interested in any type of investing. The safest, risk-free option obviously would be to stick it in a savings account with as high an interest rate you can get. However, that’s not enough for many people. There are more profitable strategies – plus, you might not want to put all of your money into one place. When thinking about the best way to invest $10,000, it’s important to consider not only the traditional options, but newer ones as well.

One such “newer” type of investment is the peer-to-peer lending platform that involves joining an online platform where investors can become “lenders” themselves to others who need money and don’t want to go through a big bank or financial institutional lender. With peer-to-peer lending platforms, you can spread your investments against hundreds of loan increments for as low as $25 – $50 depending on which platform you choose, and earn around 5{cf291cfc7269490771c2e5c8f8cab8cac79ddb0009ca0d6c13a6d788af335a8c} per year on each in interest. However, you could score a higher rate of return if you spend more money and make riskier loans.

EFTs should also be considered. “Exchange-traded funds” can contain a wide variety of investments, including commodities, bonds, and stocks, some of which are US only holdings while others are international. The benefit of going for an EFT as opposed to purchasing stocks individually is that there are low expense ratios and fewer broker fees to worry about.

Best Way to Invest $10,000 Online

One of the best ways to invest ten thousand in the 21st century is to use an ONLINE bank that offers CDs. Since online banks don’t have physical branches all over the country, they don’t need as much overhead and operational costs, and are therefore in a better position to offer clients higher CD rates than the traditional brick-and-mortar type of bank.

CDs can be more profitable than savings accounts because with CDs, you agree to deposit and keep your money in the account for a set amount of time, referred to as “term length”. During that time, you will not have any access to the funds and if you make an early withdrawal, there could be a penalty.

Another great thing about living in the 21st century is that you don’t need $100,000 to invest in real estate. You can still do it with $10,000, as long as you look into REITs (real estate investment trusts). These types of companies own / finance income-producing real estate in a range of sectors (retail, lodging and resorts, self storage, health care, residential, etc… ) across different geographical areas.

If you’re unsure about the best way to invest $10,000, join Motley Fool. You’ll get all of the educational tools and resources you’ll need, including free advice, on the best places to put your money and the top stop picks by the leading experts.