Putting money in a bank to sit is what poor people and the life-long unsuccessful people do. Don't just let your money sit. Make it work. At the very least, look for something solid, but yielding more than a thank you letter from your bank. Yes, you can invest in the stock market with $1k. Take some for growth and a little for speculation. Diversify the pie up and there you go. It's much better than doing nothing. Oh, and stay away from stock tips that talk about insider info. The person is either lying or breaking the law. A good start might be to head over to Amazon.com and look for used business books with good ratings/reviews. Get your feet wet and learn the basics.