I've Got $5,000 Burning a Hole in My Pocket -- Here Are 3 Moves I'm Considering to Grow It
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A while back, I filed an insurance claim that I honestly thought would go nowhere. It dragged on forever… and then out of the blue, I got a check in the mail.
$5,000! Unexpected, but very welcome.
Part of me wants to blow it on fun toys and maybe a family vacay. It's pretty much Christmas already, right?
But deep down, I know this money deserves more than a few clicks on Amazon. It has the potential to grow into something big over time if I invest it right.
Here's where I'm thinking of putting it.
1. Parking it in a high-yield savings account
The first stop for any spare cash is a high-yield savings account (HYSA) -- aka a smarter version of a basic bank savings account.
My current HYSA pays 4.00% APY, which is a heck of a lot better than the 0.01% I'm getting at my Chase checking account.
Here's what that looks like if I stash $5,000 in there for now:
- $200/year in interest
- About $16.67/month
- Money stays totally liquid (I can pull it out anytime)
Even if I only let it sit there for a few months while I decide what to do, that's free money I earn just for being patient.
If you don't have an HYSA right now, one of the top options is LendingClub LevelUp Savings, currently offering 4.20% APY with $250+ in monthly deposits. Read our full review to see if it's the right fit for you.
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- Competitive APY
- No fees
- Easy ATM access
- Unlimited number of external transfers (up to daily transaction limits)
- Requires you to make monthly deposits to earn the best APY
- ACH outbound transfers limited to $10,000 per day for some accounts
- No branch access; online only
The LendingClub LevelUp Savings account has a lot to offer. At the top of the list is its high APY, though you must deposit monthly to earn the best rate. Next is zero account fees, a strong and straightforward perk. Finally, you get a free ATM card, which you can use to withdraw from thousands of ATMs nationwide. Interested? You can open an account with $0.
2. Growing it in the stock market
Stocks can be volatile, so I only invest long-term money into the market.
Let's say I put the full $5,000 into a low-cost index fund and let it ride for a few decades. Assuming an average return of 8% (a little lower than the historical average of the S&P 500) here's what that could grow into:
| Time Invested | Future Balance |
|---|---|
| 10 years | $10,794 |
| 20 years | $23,305 |
| 30 years | $50,313 |
That's a 10X return over 30 years, and a useful chunk I could enjoy in retirement.
The market will have its ups and downs, sure. But historically, long-term investing has been one of the most reliable ways to build wealth. And the earlier you start, the more time you give compound growth to work its magic.
3. Trying a short-term CD (for guaranteed returns)
I haven't decided yet, but we've got a few short-term money goals brewing for 2026.
And since I don't want to invest money I'll definitely need next year, a certificate of deposit (CD) might be a smart in-between move.
Right now, you can find top short-term CDs (6- to 12-months) paying APYs around 4.10%. That's better than most savings accounts, and the rate is locked in for the entire term.
If I locked in $5,000 for 12 months, I'd earn a guaranteed ~$200 in interest over that term. Not bad for zero risk.
Why I'm trying to grow it, not blow it
I've blown unexpected money before. And honestly, I barely remember what I spent it on.
I've also made some smart investments in my life, which have paid off in a massive way.
That's the difference I'm shooting for with this $5,000. I want to turn it into something meaningful instead of blowing it YOLO style.
Yeah, it's boring. But I'm pretty sure I'll be looking back later, happy about making the boring choice.
Explore today's top high-yield savings accounts to start earning more on your short-term cash, safely and effortlessly.
Our Research Expert
Joel O’Leary is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, mortgages, and other personal finance topics. Joel has been writing about personal finance since 2018, previously leading editorial content for the How To Money podcast and serving as a resident writer at Budgets Are Sexy. He bought his first rental property at age 18, funding the down payment with savings from his high school job at McDonald’s -- a testament to his lifelong passion for smart money decisions. His work aims to make personal finance accessible and actionable for everyday readers. When he’s not writing, Joel enjoys surfing and spending time with his family.