(Where) should a 17 year old invest?

In the long-term, investing in stocks, or in mutual funds that invest in stocks, gives the highest payoff. But for a simple start, you might want to consider a Certificate of Deposit (CD). You can open one of these accounts at most banks or credit unions, and you can check at the banks in your area to see which offers the best rates. CDs are a special type of savings account. You have to keep the money in the account for a pre-specified period of time (for instance, three months, six months, one year, 18 months, two years), but in return for making that commitment you receive a higher rate of interest than you would with a straightforward savings account. (Actually, you can withdraw the money early if you really need it, but you will pay a high penalty rate for doing so.) The longer you commit to leaving the money in the account, the higher the interest rate will be, i.e., a one-year account will pay a higher rate of interest then a three-month account. CDs often require a minimum deposit of $500 or $1000. There is also the possibility of a simple savings account. They don't pay very high interest, but if you look around, you can find banks that don't require minimum deposits and don't charge high fees.

Opening up a retirement account (IRA or Roth IRA) may be an even better investment alternative, although I am not sure if this is possible if you are under 18. If you open up the account through a mutual fund company such as Vanguard or Fidelity, then you can invest the money in your IRA in any of their stock or bond funds, which potentially could give you much better returns than a certificate of deposit. Also, you'd be shocked at the results you can get by putting even small amounts, such as $500 or $1000, in an IRA at a young age, because your savings will have so many years to compound over time.

There are some good books on investing out there, some geared to students or people in their 20s, and I think you might find them helpful. There are many investment options, and the topic can be complicated, so it's good to familiarize yourself with some of the possibilities before making decisions. Kudos to you for your forethought in considering how best to manage your money!

Thanks for the tip!

I went to my bank today and tied my money to 6 months, which made my interest rate a lot higher.

Hey, quick work! Wish I was as quick about taking action on things.

Invest the money in yourself .....your personal development.

It's the best investment you will ever make - because the returns are so huge!

Education is of course a great investment. Building a savings account so that you can avoid debt as you establish yourself as a young man is important. I also highly recommend you open a Roth IRA and at your tender age, put your money into aggressive stock funds!

Being young is the time for taking chances. You have time to recover if the risk doesn't pay off. Aggresive is definitely the way to go. Good luck. I also like the idea of investing in yourself as well. Its often overlooked and excellent advice.

Ing has an online savings account paying 3% interest. I'd put some money there.

Just keep saving your money for now so you can use it for college or a car or some other expenses you will run into in your late teens and early twenties. Keep it in CDs or a high interest savings account to help beat inflation.

Smartile has hit the nail on the head. Investment in yourself is always the best use of your money. Any investment in personal development will be carried with you wherever you go. Plan on a higher education and a range of work experiences. These will pay benefits like nothing else.

Financial investments grow slowly, but with good investment in yourself, you can earn more income and that creates wealth and financial well being so much faster than any financial investment alone. Once you are ahead of the power curve in terms of income, then you'll have much more ability to make financial investments.

My experience shows that the best investments are in the area of starting your own enterprise. You probably can't start anything big or adventurous, but starting now or soon could provide you with useful experience that will lead to bigger and better opportunities for control of your financial future.

A great book you might want to check out is Suze Orman's The Money Book for the Young, Fabulous & Broke. It offers practical advice on what people our age (or anyone just starting out to their late 30's) should do with their money. For me, I like keeping my money in an FDIC-insured bank that pays at least a 3% APY. Also, take the time to read Money or Kiplinger's monthly magazines. You don't have to read it cover to cover but just whatever you find interesting or relevant to your situation. Good luck!