Post # 1
We are saving for a big house downpayment. Right now, I’m socking money away in our money marked account (APY .12%). I’m thinking I’d like to grow that account in 10K increments and then move the money to a higher yield account. Only problem is – I have no clue what type of account to look for. Would a long-term CD sound right? Or are there better places to put the money.
I don’t see us taking the money out for about 4-5 years… so, it would just sit (and hopefully grow). I don’t want any high-risk situation or scenario where I could lose the money.
Post # 3
For low risk and high return your best bet is probably a rewards checking account, but you have to jump through a few hoops to get the best returns.
Post # 4
Ally is offering a traditional 5 year CD with an APY of 1.79% which is pretty good. US Bank has a 5 year at 2.25% APY which is way better. Both are very safe options. You may want to sit down with a financial advisor who can go over the best and safest ways to make money grow.
Post # 5
@oracle: Darling Husband and I were just talking about this the other day…curious to read some responses!
Post # 6
I would put it into the highest interest CD you can find. I bank at a local credit union and USAA, which both have good returns.
Post # 7
Honestly, I would look into some sort of managed portfoilio or mutual funds. I know Bank of America has some managed portfoilios that start at 50k minimum, but I’m not sure what they or anyone else might have for smaller balances. I know it sounds risky, but to put it in perspective, I started investing right around the peak of the market at 2007. I took a huge dive during the crash and was down about 35% but have since recovered and up about 20%. Meanwhile the market is not even quite back to those levels yet. The only problem is that if you it doesnt take a dive again you’d have to be able to wait it out a bit, which I guess may not be ideal for you.
Post # 8
Because the interest rates are so low and you can borrow “practically for free”, that unfortunately means that for those of us trying to save, it’s nearly impossible to get a good savings rate.
ING has a comparably good savings account, but other than risky investments your best bet for a relatively decent return would be investing in long-term CDs at your bank or local credit union.
It’s such a great time to buy because you can get so much, but for those of us who just aren’t ready or don’t have the savings for the down payment, it’s tough!