Top 10 Places to Invest $100 for the Highest Return in 1 Year

1. Peer-to-Peer Lending

Potential Return: 5%-10%

Peer-to-peer (P2P) lending platforms, such as LendingClub or Prosper, connect investors with borrowers. By investing $100 in a pool of loans, you act as a mini-lender, earning interest on the money lent. Many platforms allow you to spread your investment across multiple borrowers to diversify risk. Returns can vary, but it’s possible to achieve 5%-10% annual returns, depending on the borrower’s creditworthiness.

2. High-Interest Savings Accounts

Potential Return: 4%-5%

High-yield savings accounts are a low-risk investment option, especially in a rising interest rate environment. Online banks, such as Ally, Marcus, or Discover, often offer annual interest rates that outpace traditional brick-and-mortar banks. While the return isn’t dramatic, it’s a safe place to grow your money with little risk and immediate liquidity.

3. Micro-Investing Apps

Potential Return: 5%-10%

Micro-investing platforms like Acorns or Stash allow you to invest small amounts of money into diversified portfolios. Acorns, for example, rounds up your everyday purchases and invests the spare change into low-cost ETFs (Exchange Traded Funds). With just $100, you can start building a portfolio that gives you exposure to a range of assets, including stocks and bonds. Over the course of a year, returns can vary depending on market performance but can reach up to 10%.

4. Cryptocurrency

Potential Return: 0%-100%+ (highly volatile)

If you’re open to high risk, investing $100 in cryptocurrency could yield significant returns within a year. Bitcoin, Ethereum, or even smaller altcoins can experience dramatic price fluctuations, sometimes increasing by double or triple digits. However, cryptocurrency is notoriously volatile, and you could lose your entire investment if the market turns against you. For the bold investor, this could be a way to quickly grow $100, but be prepared for the inherent risks.

5. Index Funds or ETFs

Potential Return: 7%-12%

Index funds and ETFs are popular because they offer broad market exposure, low fees, and historically consistent returns. For example, an S&P 500 index fund gives you a share in 500 of the largest companies in the U.S., which have historically returned around 7%-10% annually. You can invest $100 in an ETF through brokers like Vanguard, Fidelity, or Robinhood, and let your money grow in line with the overall stock market.

6. Stocks of Small or Penny Stocks

Potential Return: 10%-50% (or more, highly speculative)

If you’re interested in higher-risk ventures, penny stocks (stocks trading for less than $5 per share) could provide higher returns. Stocks of small companies can be extremely volatile, but a well-researched investment could skyrocket within a year. However, these stocks can also become worthless, so it’s crucial to research companies thoroughly. Platforms like Robinhood allow you to trade penny stocks commission-free.

7. Real Estate Crowdfunding

Potential Return: 5%-12%

Platforms like Fundrise or Groundfloor allow you to invest in real estate projects with as little as $10. While your $100 investment won’t be enough to buy a house, it can still give you exposure to real estate markets. Crowdfunded real estate projects typically provide dividends from rental income or profits from property appreciation, offering returns between 5%-12% annually.

8. Dividend Stocks

Potential Return: 3%-8% (plus stock appreciation)

Dividend-paying stocks are a great way to generate passive income while benefiting from stock price appreciation. Many companies distribute a portion of their earnings as dividends, which can yield anywhere from 3%-8% annually. With $100, you can buy shares in established companies known for their steady dividends. Platforms like M1 Finance allow fractional shares, so you can invest even small amounts in expensive dividend stocks like Apple or Coca-Cola.

9. Start a Small Business

Potential Return: Unlimited (based on success)

If you’re entrepreneurial, investing $100 in starting a small business could lead to unlimited returns. For example, you could start a digital product business, a print-on-demand service, or an affiliate marketing website with a minimal initial investment. Digital products and online businesses have low overhead costs and can generate substantial income if marketed effectively. Websites like Etsy, Amazon, or eBay provide platforms to sell your products or services globally.

10. Education or Skill Development

Potential Return: Indirect, but high

Investing $100 in yourself by acquiring new skills or certifications can provide some of the highest long-term returns. For instance, taking an online course in web development, digital marketing, or personal finance can open up opportunities for higher-paying jobs, freelance gigs, or side hustles. Platforms like Udemy, Coursera, and LinkedIn Learning offer affordable courses that can pay off over time in higher income potential or new career paths.

Final Thoughts

While $100 might seem like a small amount to invest, there are plenty of ways to make it grow within a year. Whether you’re opting for a low-risk savings account or a high-risk cryptocurrency, the key is to align your investment choices with your risk tolerance and financial goals. Many of the options above allow you to reinvest earnings, compounding your growth over time. With some research and a bit of patience, your $100 can set the stage for much greater financial returns in the future.