Here’s a surprising fact: over 60% of American households own stocks today. More people than ever build their wealth through investing, either directly or through investment funds. You don’t need a fortune to start investing – many best investments options are available for $100 or less. Smart investing plays a vital role to protect your purchasing power and help you reach your long-term financial goals, especially retirement.
We looked at the most reliable and promising investment options for 2025. These range from high-yield savings accounts with peak rates to robo-advisors that manage diversified ETF portfolios based on your risk tolerance. This piece will guide you to pick the right investment path for your first $100 if you’re just starting out.
High-Yield Savings Accounts
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High-yield savings accounts are one of the safest ways to grow your money in 2025. The national average savings rate is 0.41%, but online banks give you substantially higher returns.
Best High-Yield Savings Account Rates in 2025
Openbank now guides the market with a 4.75% APY. Pibank follows at 4.60% APY and Newtek Bank at 4.55% APY. These rates are more than 11 times higher than what traditional banks offer.
Minimum Balance Requirements
Top-performing accounts need very little money to start. You’ll need $500 to open an Openbank account. Pibank welcomes any amount. Most online banks skip monthly maintenance fees altogether.
Annual Percentage Yields (APY)
Most accounts compound interest daily and credit earnings monthly. The rates can change based on market conditions. The Federal Reserve’s recent decisions point to these attractive returns staying strong through 2025.
Account Features and Accessibility
We use online banks to manage these accounts through mobile apps and websites. Your money stays safe with FDIC insurance up to $250,000. You can deposit as much as you want, though some banks limit monthly withdrawals.
| Feature | Details |
|---|---|
| Mobile Banking | 24/7 access |
| FDIC Insurance | Up to $250,000 |
| Withdrawals | Monthly limits may apply |
| Interest Compounding | Daily |
Index Fund ETFs
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Index fund ETFs give you a simple way to invest in the stock market. These investment vehicles track specific market indexes and offer broad diversification at low costs.
Best Low-Cost Index ETFs for Beginners
The Vanguard Total Stock Market ETF stands out with just a 0.03% expense ratio. New investors find it budget-friendly. The iShares Core S&P 500 ETF (IVV) draws beginners with its 0.03% fee structure. You’ll pay only $3 per year in fees on a $10,000 investment.
ETF Investment Minimums
Dollar-based trading has removed the old investment barriers. Vanguard lets you start with just $1. You can buy fractional shares and match your Best Investments to your budget.
Popular Index ETF Options Under $100
You can get these quality ETFs with $100:
- Invesco NASDAQ 100 ETF (QQQM): 0.15% expense ratio
- Schwab U.S. Small-Cap ETF: 0.04% expense ratio
- Vanguard Russell 1000 ETF: 0.08% expense ratio
ETF Trading Fees and Expenses
The total cost structure plays a vital role:
| Fee Type | Typical Range |
|---|---|
| Expense Ratio | 0.03% – 0.20% |
| Bid-Ask Spreads | $0.01 – $0.25 |
| Commission | Often $0 at major brokers |
Major brokerages now offer free online trading. Bid-ask spreads might affect your trading costs. The average ETF expense ratio is 0.44%, but many popular options charge much less.
Micro-Investing Apps
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Micro-investing platforms make investing available by letting you build wealth through small, regular contributions over time.
Top Micro-Investing Platforms in 2025
Acorns guides the micro-investing space through its detailed investment options and automated features. We focused on Webull that gives commission-free trading with high interest on uninvested cash. As with Robinhood, it draws beginners with its user-friendly interface and commission-free trades on stocks and ETFs.
Investment Minimums and Fees
The entry barriers stay low on most platforms:
| Platform | Minimum | Monthly Fee |
|---|---|---|
| Acorns | $5 | $3-$12 |
| Webull | $0 | $0 |
| Robinhood | $0 | $0 |
Features for New Investors
These platforms give you educational tools and user-friendly interfaces. Acorns suggests portfolios based on your risk tolerance and goals. The platform has retirement account savings and banking perks. Most apps give you immediate market data and customizable watchlists to track investments.
Round-Up Investment Options
Round-up features invest your spare change from daily purchases automatically. To name just one example, you spend $3.25 on coffee and $0.75 goes into investments automatically. Acorns users invest over $30 monthly through round-ups alone. This automated approach helps you keep consistent investment habits without active management.
Fractional Shares
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Fractional shares make stock market access easier by letting investors buy portions of expensive stocks with minimal capital. This state-of-the-art approach helps beginners buy premium stocks.
Best Brokers for Fractional Share Investing
Fidelity guides investors with access to over 7,000 stocks and ETFs, requiring just $1 minimum investment. Charles Schwab offers “Stock Slices” with $5 minimums for S&P 500 stocks. Interactive Brokers excels by providing fractional shares across 150 global markets.
How Fractional Shares Work
Investors specify a dollar amount for investment instead of purchasing whole shares. A stock trading at $3,000 allows you to invest $50 to own 1.67% of a share. These shares generate proportional dividends and maintain the same potential for capital gains as full shares.
| Feature | Details |
|---|---|
| Minimum Investment | $1-$5 |
| Available Assets | Stocks & ETFs |
| Dividend Rights | Proportional |
| Trading Hours | 9:30 AM – 4:00 PM ET |
Popular Stocks Under $100
Several compelling stocks trade under $100 in 2025, including PayPal and Roku at $81 and $75 respectively. These options help investors diversify their portfolios with modest capital.
Trading Fees and Minimums
Major brokers now offer commission-free trading for online U.S. stocks and ETFs. You can place orders in dollar amounts with two decimal places, and fractional quantities extend to three decimal places (.001). Keep in mind that fractional positions may need liquidation before transferring to another broker.
Robo-Advisors
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Robo-advisors have changed how beginners enter the investment market through automated management. These digital platforms use smart algorithms to build and manage tailored investment portfolios.
Leading Robo-Advisor Platforms
Wealthfront leads the pack as the top choice for beginners and provides detailed investment management with a $500 minimum investment. Betterment appeals to new investors with a low $10 starting requirement. SoFi Automated Investing makes investing even more accessible with no management fees and just a $1 minimum.
Management Fees and Minimums
Robo-advisors keep their fee structures competitive:
| Platform | Management Fee | Minimum Investment |
|---|---|---|
| Wealthfront | 0.25% | $500 |
| Betterment | 0.25% | $10 |
| SoFi | 0.00% | $1 |
Investment Strategies
These platforms build portfolios using 17 asset classes to create diversified Best Investments based on modern portfolio theory. They evaluate your risk tolerance and financial goals through questionnaires and automatically rebalance portfolios to maintain the best asset allocation.
Account Types Available
These platforms offer several account options:
- Individual and joint investment accounts
- Traditional and Roth IRAs
- SEP and SIMPLE IRAs for small business owners
- 529 college savings plans
Robo-advisors blend tax-efficient strategies, including tax-loss harvesting, to maximize after-tax returns. Their digital financial planning tools can handle up to 10,000 questions about portfolio management and retirement planning.
Target Date Funds
Image Source: Vanguard Institutional
Target date funds offer a distinctive way to invest for retirement. More than half of all 401(k) assets are now managed through these investment vehicles.
Best Target Date Funds for 2025
The top performers right now are Voya Index Solution 2025, Fidelity Simplicity RMD 2025, and Principal LifeTime 2025 Fund. These funds balance growth opportunities with risk management as retirement gets closer.
Fund Expenses and Minimums
You’ll find these investment requirements quite reasonable:
| Fund Provider | Minimum Investment | Expense Ratio |
|---|---|---|
| Vanguard | $1,000 | 0.08% |
| Fidelity Index | N/A | 0.12% |
| Active Funds | Varies | 0.52% |
Asset Allocation Strategies
These funds start with higher equity exposure to maximize growth potential. The portfolio mix changes through a “glide path” and gradually increases bond allocation as you get closer to retirement. When you reach retirement, a typical allocation has about 24% equity funds, 46% bond funds, and 30% cash or short-term funds.
Risk Management Approach
These funds use sophisticated risk management through:
- Daily portfolio rebalancing that maintains target allocations
- Diversification in multiple asset classes
- Protection against inflation using TIPS and real estate Best Investments
Target date funds handle automatic rebalancing and move from growth-focused investments to more conservative options as the target date gets closer. This professional management helps protect your retirement savings from market volatility without you needing to actively manage the Best Investments.
Cryptocurrency ETFs
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Bitcoin ETFs now give traditional investors an easier way to invest in digital assets. The SEC’s approval of spot Bitcoin ETFs in January 2024 changed the investment map.
Top Crypto ETFs for Beginners
The iShares Bitcoin Trust (IBIT) leads the market with over USD 37 billion in net inflows. The Grayscale Bitcoin Mini Trust ETF stands out with one of the lowest expense ratios at 0.15%. These funds let investors track Bitcoin’s price movements through traditional stock exchanges.
Investment Requirements
Crypto ETFs have simple entry points for new investors. The funds are available on regular stock exchanges during market hours. Investors can buy shares through their brokerage accounts without needing cryptocurrency wallets or exchange accounts.
Risk Considerations
Crypto ETFs come with several challenges:
- Price swings create market volatility
- Different jurisdictions face regulatory uncertainty
- ETF performance might not exactly match underlying assets
Trading Costs and Fees
The fee structure shows competitive pricing:
| Provider | Annual Fee | Assets Under Management |
|---|---|---|
| BlackRock IBIT | 0.12% | USD 51.0 billion |
| Grayscale Mini | 0.15% | USD 3.6 billion |
| Franklin Bitcoin | 0.19% | USD 725.9 million |
These funds keep most assets in cold storage and use hot wallets only for daily operations. Management fees affect returns over time but cost less than traditional crypto exchange fees.
Comparison Table of Best Investments
| Best Investments | Minimum Investment | Fees/Expense Ratios | Key Features | Notable Providers | Risk Level |
|---|---|---|---|---|---|
| High-Yield Savings Accounts | $0-$500 | No monthly fees mentioned | – FDIC insured up to $250,000 – Daily interest compounding – 24/7 online access | – Openbank (4.75% APY) – Pibank (4.60% APY) – Newtek Bank (4.55% APY) | Low |
| Index Fund ETFs | $1 | 0.03%-0.20% | – Broad market diversification – Commission-free trading – Fractional shares available | – Vanguard Total Stock Market ETF – iShares Core S&P 500 ETF | Moderate |
| Micro-Investing Apps | $0-$5 | $0-$12 monthly | – Round-up investment features – Automated investing – Educational tools | – Acorns – Webull – Robinhood | Varies |
| Fractional Shares | $1-$5 | Commission-free | – Buy portions of expensive stocks – Proportional dividends – Access to premium stocks | – Fidelity – Charles Schwab – Interactive Brokers | Varies |
| Robo-Advisors | $1-$500 | 0.00%-0.25% | – Automated portfolio management – Tax-loss harvesting – Automatic rebalancing | – Wealthfront – Betterment – SoFi | Moderate |
| Target Date Funds | $1,000 | 0.08%-0.52% | – Automatic rebalancing – Age-based allocation – Professional management | – Vanguard – Fidelity – Principal | Decreases over time |
| Cryptocurrency ETFs | Not mentioned | 0.12%-0.19% | – Traditional exchange trading – Cold storage security – No crypto wallet needed | – BlackRock IBIT – Grayscale Mini – Franklin Bitcoin | High |
Conclusion on Best Investments for Beginners in 2025
You can now start investing with options that fit your budget and comfort with risk. High-yield savings accounts deliver safe returns above 4.5%. Index ETFs give you broad market exposure at low costs. Modern micro-investing apps and fractional shares have removed old barriers. Best Investments are now available with just a few dollars.
Your financial goals and risk tolerance should guide your investment choices. A conservative investor’s best options are high-yield savings accounts or target date funds. Those looking for growth can explore index ETFs or buy fractional shares of well-established companies.
Success in investing comes from an early start and steady approach, whatever the amount. These seven Best Investments options show that building wealth doesn’t need big capital. A smart strategy and regular contributions matter more than your original investment size.
Take time to study these options and understand their features. Select Best Investments that match your long-term financial goals. A portfolio that includes several of these choices provides better protection against market swings and helps maximize your returns.
FAQs on Best Investments
What are some safe investment options for beginners in 2025?
For beginners in 2025, some Best Investments options include high-yield savings accounts offering rates above 4.5%, index fund ETFs with low expense ratios, and target date funds that automatically adjust risk over time. These options provide a balance of safety and potential returns for those just starting their investment journey.
How much money do I need to start investing?
You can start investing with as little as $1 to $100, depending on the investment type. Many platforms now offer fractional shares and micro-investing options, allowing you to begin with small amounts. For example, some robo-advisors have minimums as low as $1, while certain index ETFs can be purchased for just a few dollars.
What are the advantages of using robo-advisors for investing?
Robo-advisors offer automated portfolio management, typically with low fees ranging from 0% to 0.25%. They provide benefits such as automatic rebalancing, tax-loss harvesting, and personalized investment strategies based on your risk tolerance and financial goals. This makes them an excellent option for beginners who want professional management without high costs.
Are cryptocurrency ETFs a good investment for beginners?
Cryptocurrency ETFs can provide exposure to digital assets through traditional stock exchanges, which may be more familiar to beginners. However, they come with high risk due to market volatility and regulatory uncertainties. While they offer easier access to cryptocurrency markets, beginners should carefully consider their risk tolerance before investing in these products.
How can I diversify my investment portfolio with $100?
With $100, you can diversify your portfolio by using micro-investing apps or robo-advisors that spread your investment across multiple assets. Another option is to invest in low-cost index ETFs that track broad market indices, providing instant diversification. You could also consider fractional shares to buy small portions of different stocks, allowing for a mix of companies in your portfolio even with a limited budget.
