How to Invest 100 Dollars: A Beginner’s Guide to Smart, Simple Choices
Written by
Terence Loose
Edited by
Joe Evans
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Wondering how to invest 100 dollars and actually grow it? You’re not alone — and the good news is, you don’t need thousands to start building wealth. With just $100, you can begin investing in real, beginner-friendly ways that are low-stress, low-risk, and full of potential.
Whether you’re just starting out or looking for smart ways to make your money work harder, this guide breaks down the top investment options for $100, how to choose the right one and how to make your small investment count over time.
Best Ways to Invest $100 (Even If You’re Brand New)
Over 60% of millennials and Gen Z investors start investing with less than $500. If you’ve got $100 and you’re ready to invest, here are your top options — ranked for simplicity, accessibility and long-term value.
1. Robo-Advisors
Robo-advisors are automated investing tools that do the heavy lifting for you. You answer a few questions about your goals and risk tolerance, and the platform builds a portfolio for you.
Why it’s great: You don’t need to pick stocks or know anything about the market.Start with: Betterment, SoFi or Wealthfront — many have $0 minimums.
2. ETFs (Exchange-Traded Funds)
Think of ETFs as bundles of investments, like a pre-packed basket of stocks or bonds. They’re low-cost and diversified, meaning your $100 gets spread across many companies.
Pro tip: Some brokerages let you buy fractional shares of ETFs, so you don’t need to afford a full one.
3. Fractional Shares of Stocks
Love the idea of owning a piece of Apple or Tesla? Fractional shares let you invest in expensive stocks without needing thousands of dollars.
Example: Instead of paying over $3,000 for one share of Amazon, you could invest $10 into a fraction of it.
4. High-Yield Savings Account
If you’re ultra-cautious, start with a high-yield savings account. It’s not technically investing, but you’ll earn more interest than a regular savings account.
Current average: Some online banks offer over 4.00% APY (as of July 2025).Check out: Ally, Marcus by Goldman Sachs or Discover.
5. Certificates of Deposit (CDs)
Historically, CDs are one of the safest and most assured investments you can make. A CD locks your money for a set period — like 6 or 12 months — and pays you a guaranteed rate in return.
Why it’s safe: Your money is FDIC insured, and rates are higher than standard savings.
6. Micro-Investing Apps
Recent analysis by the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) indicates that over 60% of retail investors in the U.S. now use mobile devices to access their trading platforms. This marks a significant increase from 50% in 2020.
Apps like Acorns and Stash invest your spare change by rounding up your everyday purchases. You can also set recurring deposits as low as $5.
Fun fact: Over 10 million users use Acorns to grow wealth automatically.
How to Choose the Best Investment for Your $100
Investing $100 is about matching your money to your goals and risk tolerance. Here’s how to make the right pick:
What Are Your Investment Goals?
Naturally, your investing goals and objectives will change with time. Short-term goals (like a vacation next year)? Stick with savings accounts or CDs. Long-term goals (like retirement)? Consider stocks, ETFs or robo-advisors.
How Much Risk Are You Comfortable With?
If the idea of losing money stresses you out, start with safer options. That’s where risk tolerance comes into play. If you’re okay with some ups and downs, ETFs or fractional stocks are a great choice.
Want To Play It Smart? Diversify
Even with $100, you can spread your money across different types of investments using ETFs or robo-advisors that build a balanced portfolio.
How to Start Investing with Just $100
Getting started is easier than you think. Follow these quick steps:
- Pick your platform – Choose a brokerage (like Fidelity or Charles Schwab), robo-advisor (like Betterment) or app (like Acorns or Robinhood).
- Open your account – Most take under 10 minutes to set up.
- Deposit your $100 – Link a bank account and transfer funds.
- Make your first investment – Choose an ETF, stock or fund.
- Automate it – Set up small monthly deposits to build momentum.
Reminder: Even $25/month added to your initial $100 can grow to over $5,000 in 10 years with a 7% return.
What Are the Risks of Investing $100
Just like with all investments, there are some risks to consider while investing.
No Guaranteed Returns
The market goes up and down. If you invest in stocks or ETFs, expect occasional dips — but stay focused on the long-term.
Fees Can Eat Into Gains
Look for platforms with $0 account minimums and no monthly fees. Even $1 per month can cut into small investments fast.
Don’t Expect Overnight Success
A $100 investment won’t make you rich fast, but it’s the first step in building good financial habits.
How to Grow Your $100 Investment Over Time
Want to turn your $100 into something bigger? Here’s how:
- Reinvest your earnings: Choose “dividend reinvestment” so your gains buy more shares.
- Add money regularly: Even $10/month adds up thanks to compounding.
- Use auto-deposit features: Set it and forget it with recurring transfers.
- Track your progress: Use free tools like Mint or your broker’s app to stay motivated.
Final Take to GO: Start Small, Grow Big
Learning how to invest 100 dollars isn’t about getting rich overnight — it’s about getting started. Whether you pick ETFs, robo-advisors or just stash your cash in a high-yield savings account, the key is to take action.
Ready to Start?
- Open an account with a beginner-friendly platform
- Deposit your first $100
- Set a reminder to add more next month
The first step is the most powerful.
FAQ
Here are the answers to some of the most frequently asked questions about how to invest 100 dollars and how it works:- Can I really make money with just $100?
- Yes — but not overnight. It’s more about building the habit than chasing fast returns.
- What’s the safest way to invest $100?
- High-yield savings accounts, CDs, or robo-advisors are low-risk places to start.
- Should I invest in stocks or ETFs with $100?
- ETFs are better for beginners. They give you built-in diversification with one purchase.
- Can I invest in real estate with $100?
- Yes — platforms like Fundrise let you buy into real estate portfolios starting at $10 to $100. Keep in mind: these are long-term and less liquid.
- How long does it take to grow a $100 investment?
- It depends on what you invest in and how often you add to it. Historically, the stock market averages 7% to 10% annual returns over time.
Data is accurate as of July 10, 2025, and is subject to change.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
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