If you had a noticeable amount of cash sitting around, that you expected to spend over the next two years for your living expenses, where would you stash it to earn *something*?
Interest rates on savings/money market seem to be approximately 0.02%, so a six-figure sum on deposit seems to earn about.....$0/month, rounding down to the nearest dollar...
Any clever ideas appreciated.
Not very clever, but I would put it in Ally and make .6% in a money market checking account.Originally Posted by bae
That's about .6% better than the current situation, so thank you!!!
Of course!
Oh, shoot, edited to add I just went on to check and the accounts are down to .5%. Sorry I mis-represented the interest.
New one year cds are at .6 and then if I renew they add .05 to that.
My emergency fund is in a 6 month CD hoping for high interest rates. I might check out building a 2 year CD ladder with maturities coming due around the time you might use the money. I suppose an investment firm might build a similar investment grade corporate bond ladder for a little higher return. No idea how the numbers might turn out. I don't get creative with my emergency fund.
I think laddered CDs would be my choice. I-Bonds could be another choice, but they might be cumbersome to buy and redeem depending on when you need the money and there's a fairly low limit on how much you can invest in them.
Success is to be measured not so much by the position that one has reached in life as by the obstacles which he has overcome. - Booker T. Washington
I have a savings account with Ally. Though it has gone from 2% to .5, sure beats a regular bank's rate for stashing short-term funds.
There are currently 1 users browsing this thread. (0 members and 1 guests)
Posting Permissions
Reply With Quote