Seeking Advice

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wilsonbh
Posts: 6
Joined: Wed Dec 13, 2017 10:33 am

Seeking Advice

Post by wilsonbh » Fri Aug 31, 2018 4:01 pm

I have a Fidelity account with a small IRA and some cash. I also have a savings account with Bank of America which is approaching $100K. I'm saving up (along with my home equity) to buy a home in North Georgia with the sale of my Florida home. Plans in work to do this late next year sometime.

In the meantime, it's irritating me that Bank of America gives me about 55¢ a month in interest on this savings. I may need some quick liquidity for cash once I find the house I want but probably only need the money within 48 hours should be fine.

My question is should I move this Bank of America savings into an investment account with Fidelity and put it into some mutual funds? What would you do in this situation? Appreciate any advice here.

BW

mortfree
Posts: 1211
Joined: Mon Sep 12, 2016 7:06 pm

Re: Seeking Advice

Post by mortfree » Fri Aug 31, 2018 4:08 pm

Capital one money market

Ally savings

Any online account paying 1.85%.

delamer
Posts: 5788
Joined: Tue Feb 08, 2011 6:13 pm

Re: Seeking Advice

Post by delamer » Fri Aug 31, 2018 4:31 pm

There are mutual funds that invest in low risk US Treasury notes and mutual funds that invest in high risk emerging markets stocks. And everything in between.

You could consider a short-term bond fund, if you want something slightly riskier than a savings account but with a higher return.

megabad
Posts: 507
Joined: Fri Jun 01, 2018 4:00 pm

Re: Seeking Advice

Post by megabad » Fri Aug 31, 2018 6:19 pm

wilsonbh wrote:
Fri Aug 31, 2018 4:01 pm
My question is should I move this Bank of America savings into an investment account with Fidelity and put it into some mutual funds? What would you do in this situation? Appreciate any advice here.
If you choose to move the money to Fidelity, I would simply place the money in a Money Market Fund (you do not specify which mutual funds you are considering). However, in your case, I think it is probably simpler to move the money to an online savings account that is FDIC insured as indicated by prior posters.

Kevin8696
Posts: 138
Joined: Mon Oct 08, 2012 7:45 pm

Re: Seeking Advice

Post by Kevin8696 » Fri Aug 31, 2018 7:38 pm

wilsonbh wrote:
Fri Aug 31, 2018 4:01 pm

In the meantime, it's irritating me that Bank of America gives me about 55¢ a month in interest on this savings. I may need some quick liquidity for cash once I find the house I want but probably only need the money within 48 hours should be fine.

My question is should I move this Bank of America savings into an investment account with Fidelity and put it into some mutual funds? What would you do in this situation? Appreciate any advice here.
Ally Bank (www.ally.com)

Step 1 - Open an Ally Online Savings account, currently pays 1.85%. Set-up ACH link with BofA and transfer funds to Ally electronically.

Step 2 - Open an Ally Interest Checking account (free) and they will give you free checks (and a debit card too).

Step 3 - When you need the money, log into account, (online or mobile app) and instantly transfer funds from Online Savings to Interest Checking.

Step 4 - Write a check from Interest Checking account, use ACH to push funds back to BofA, or pay $20 to wire funds to real estate attorney.

Poof done. Easy as can be.

I have done overnight ACH transfers to and from Ally with no problems.

Ally also has a "no penalty CD" that you can cancel anytime, that pays 2.00%. Their 12-month traditional CD pays 2.50%.

Go for it !!

wilsonbh
Posts: 6
Joined: Wed Dec 13, 2017 10:33 am

Re: Seeking Advice

Post by wilsonbh » Wed Sep 12, 2018 1:52 pm

What about Laddered CD's sold via Fidelity? Any thoughts on these?

Nicolas
Posts: 1034
Joined: Wed Aug 22, 2012 7:41 am

Re: Seeking Advice

Post by Nicolas » Wed Sep 12, 2018 5:30 pm

If you need this money late next year keep it safe! Don't invest it in a mutual fund of any type, the time is too short. A 13-month CD, FDIC-insured, at Synchrony Bank yields 2.65%. That's $2870.33 interest on your $100K. https://www.synchronybank.com
(Ally's equivalent rate is only 2.5%, they don't offer a 13-month, the closest is a one-year, anyway you get more bucks at Synchrony)

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