Where to park house fund/cash?

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XDark_FenixX
Posts: 41
Joined: Wed Mar 22, 2017 6:06 pm

Where to park house fund/cash?

Post by XDark_FenixX » Wed Sep 13, 2017 5:46 pm

Hi, I was contemplating the possibility of purchasing a house within a year or two and have about $20k sitting in a non-optimal pnc growth account yielding very little (0.6%). What would be the best place to put money like this? A higher yield savings account? It doesn't have to be totally liquid so shorter term CD's aren't out of the question

limine
Posts: 3
Joined: Sun May 07, 2017 12:55 pm

Re: Where to park house fund/cash?

Post by limine » Wed Sep 13, 2017 5:50 pm

With that short of a window, I'd just use a high-yield savings account. I went through this recently, and kept everything in a GS Bank account earning just over 1%. You never know when you're going to find the right place!

JBTX
Posts: 907
Joined: Wed Jul 26, 2017 12:46 pm

Re: Where to park house fund/cash?

Post by JBTX » Wed Sep 13, 2017 6:06 pm

limine wrote:
Wed Sep 13, 2017 5:50 pm
With that short of a window, I'd just use a high-yield savings account. I went through this recently, and kept everything in a GS Bank account earning just over 1%. You never know when you're going to find the right place!
This. I use discover online savings currently at 1.35% You can get about 2.0% with ibonds, but it is tied up for a year, and until 5 years you lose one quarter worth of interest. That isn't worth it if you are going to use it within 2 years.

chrischris
Posts: 80
Joined: Fri Apr 16, 2010 1:25 pm

Re: Where to park house fund/cash?

Post by chrischris » Wed Sep 13, 2017 6:23 pm

Depending on your timeline the Ally 5 year CD is an option. I believe the internet rate is 2.25% and the penalty to cancel is 150 days worth of interest.

When I was in a similar situation a few years ago, it made more send to go with the 5 year CD and pay the penalty since the higher interest rate put me ahead of the lower rate savings accounts.

XDark_FenixX
Posts: 41
Joined: Wed Mar 22, 2017 6:06 pm

Re: Where to park house fund/cash?

Post by XDark_FenixX » Wed Sep 13, 2017 6:23 pm

JBTX wrote:
Wed Sep 13, 2017 6:06 pm
limine wrote:
Wed Sep 13, 2017 5:50 pm
With that short of a window, I'd just use a high-yield savings account. I went through this recently, and kept everything in a GS Bank account earning just over 1%. You never know when you're going to find the right place!
This. I use discover online savings currently at 1.35% You can get about 2.0% with ibonds, but it is tied up for a year, and until 5 years you lose one quarter worth of interest. That isn't worth it if you are going to use it within 2 years.
Do you mean 1.15%? They have a nice sign up offer right now but not sure how that would stack up compared to 1.35% at citbank if I intend to keep the account for a while. Or how stable these rates are in general...

JBTX
Posts: 907
Joined: Wed Jul 26, 2017 12:46 pm

Re: Where to park house fund/cash?

Post by JBTX » Wed Sep 13, 2017 6:28 pm

XDark_FenixX wrote:
Wed Sep 13, 2017 6:23 pm
JBTX wrote:
Wed Sep 13, 2017 6:06 pm
limine wrote:
Wed Sep 13, 2017 5:50 pm
With that short of a window, I'd just use a high-yield savings account. I went through this recently, and kept everything in a GS Bank account earning just over 1%. You never know when you're going to find the right place!
This. I use discover online savings currently at 1.35% You can get about 2.0% with ibonds, but it is tied up for a year, and until 5 years you lose one quarter worth of interest. That isn't worth it if you are going to use it within 2 years.
Do you mean 1.15%? They have a nice sign up offer right now but not sure how that would stack up compared to 1.35% at citbank if I intend to keep the account for a while. Or how stable these rates are in general...
Probably. I think I saw the CD rate.

If Citibank was higher I would probably go with that. The difference has never been great enough for me to consider switching. Unfortunately I have drained much of my Discover bank house due to a house remodel. :annoyed

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