Best places to park around 25K?
Best places to park around 25K?
I want to park 25K in a high yield savings account. This is part of our downpayment, earning 0.1% interest in a local credit union. What could I possibly get with a money market fund at TD Ameritrade or at Fidelity?
Thanks
Thanks
Re: Best places to park around 25K?
Ally or Marcus are .6%.
A CD maybe .75%.
No free lunch.
Actually, if you skip a couple lunches and leave the money where it is, you likely come out the same.
I would just leave it where it is.
A CD maybe .75%.
No free lunch.
Actually, if you skip a couple lunches and leave the money where it is, you likely come out the same.
I would just leave it where it is.
"We are here to provoke thoughtfulness, not agree with you." Unknown Boglehead
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Re: Best places to park around 25K?
Where’s the rest of your down payment?
Btw “high yield savings accounts” don’t exist anymore.
Re: Best places to park around 25K?
Best return these days are bank bonuses. Search doctorofcredit.com. You open a new account, keep the money there for a bit of time, get a few hundred bucks bonus.
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Re: Best places to park around 25K?
Agree as long as you’re willing to deal with some of the hassles. If you and your (?) spouse can scrounge up another $5000, you can open two $15,000 accounts at Citibank and pull in $400 each for a 2.67% one time return.
Re: Best places to park around 25K?
We can cough up the other $5000 to make your suggestion work. But what hassles should we be wary / aware of? Thanks!Doctor Rhythm wrote: ↑Sat Oct 10, 2020 1:01 amAgree as long as you’re willing to deal with some of the hassles. If you and your (?) spouse can scrounge up another $5000, you can open two $15,000 accounts at Citibank and pull in $400 each for a 2.67% one time return.
Re: Best places to park around 25K?
All at the same credit union. I thought I should get 25K out and put it in a savings accounts with a higher yield.manatee2005 wrote: ↑Sat Oct 10, 2020 12:28 amWhere’s the rest of your down payment?
Btw “high yield savings accounts” don’t exist anymore.
Re: Best places to park around 25K?
BTW, what are treasuries yielding now? We have an 18 month time period before we need our "downpayment". Any suggestions for me? I did consider corporate bond funds (VWETX) but that may be a stupid move at this time? I'm in a brain fog and would appreciate any "conservative" alternatives at this time.
Thanks!
Thanks!
Re: Best places to park around 25K?
Just make sure you read the detailed requirements to get the bonus as well as how to avoid monthly fees. The doctor of credit website does a detailed writeup to walk you through it. See link here:Zillions wrote: ↑Sat Oct 10, 2020 4:09 pmWe can cough up the other $5000 to make your suggestion work. But what hassles should we be wary / aware of? Thanks!Doctor Rhythm wrote: ↑Sat Oct 10, 2020 1:01 amAgree as long as you’re willing to deal with some of the hassles. If you and your (?) spouse can scrounge up another $5000, you can open two $15,000 accounts at Citibank and pull in $400 each for a 2.67% one time return.
https://www.doctorofcredit.com/citi-400 ... -required/
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Re: Best places to park around 25K?
I parked $24,999.99 in a checking account at Bellco Credit Union with an APY of 2.25 percent. The hassle is you need to have one monthly direct deposit transaction, one monthly online log in and 15 debit card purchases a month not including ATM transactions. The first two are easy but 15 swipes is a challenge. There are no monthly maintenance fees or balance requirements.
If you do not meet the requirements, the the rate is 0.05 percent APY.
There must be other credit unions with similar products.
If you do not meet the requirements, the the rate is 0.05 percent APY.
There must be other credit unions with similar products.
Last edited by ColoRetiredGirl on Sat Oct 10, 2020 4:50 pm, edited 1 time in total.
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Re: Best places to park around 25K?
Here’s their website.Zillions wrote: ↑Sat Oct 10, 2020 4:09 pmWe can cough up the other $5000 to make your suggestion work. But what hassles should we be wary / aware of? Thanks!Doctor Rhythm wrote: ↑Sat Oct 10, 2020 1:01 amAgree as long as you’re willing to deal with some of the hassles. If you and your (?) spouse can scrounge up another $5000, you can open two $15,000 accounts at Citibank and pull in $400 each for a 2.67% one time return.
Read the fine print to make sure the terms and conditions are acceptable. Setting up the accounts and funding them through electronic transfers from another bank was painless for us. They say you have to maintain the $15K balance for 60 days, but it could take up to another 90 days for them to pay up. In meantime, you need to keep the account open with a minimum balance of $10K to waive the maintenance fee. They also don’t make it easy to transfer money out of Citibank. It’s doable of course, but feels needlessly opaque and complicated.
One advantage of Citibank’s offer compared to most sign up bonus offers is that there isn’t a direct deposit requirement.
Last edited by Doctor Rhythm on Sat Oct 10, 2020 4:29 pm, edited 1 time in total.
Re: Best places to park around 25K?
If you want to make a bit on it, you could go after a bank bonus. For instance, one bank bonus right now requires opening a checking account and depositing $15,000 into the checking account and a total of $25,000 of deposits at the bank. (Other $10,000 can be in same or a different account.). The interest rate is basically nothing. But the bonus is $500 and is paid after 90 days. This is effectively 8% interest over 3 month's. Even if you leave the funds sit there for a year, it will be the equivalent of over 2% interest.
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Re: Best places to park around 25K?
When you go to a grocery store pay for each item separatelyColoRetiredGirl wrote: ↑Sat Oct 10, 2020 4:27 pm I parked $24,999.99 in a checking account at Bellco Credit Union with an APY of 2.25 percent. The hassle is you need to have one monthly direct deposit transaction, one monthly online log in and 15 debit card purchases a month not including ATM transactions. The first two are easy but 15 swipes is a challenge. There are no monthly maintenance fees or balance requirements.
If you do not meet the requirements, the the rate is 0.05 percent APY.
There must be other credit unions with similar products.

Re: Best places to park around 25K?
I've done that. I pick a non busy time, go to the self-checkout with 10 yogurts and ring them all up one at a time.manatee2005 wrote: ↑Sat Oct 10, 2020 7:48 pmWhen you go to a grocery store pay for each item separatelyColoRetiredGirl wrote: ↑Sat Oct 10, 2020 4:27 pm I parked $24,999.99 in a checking account at Bellco Credit Union with an APY of 2.25 percent. The hassle is you need to have one monthly direct deposit transaction, one monthly online log in and 15 debit card purchases a month not including ATM transactions. The first two are easy but 15 swipes is a challenge. There are no monthly maintenance fees or balance requirements.
If you do not meet the requirements, the the rate is 0.05 percent APY.
There must be other credit unions with similar products.![]()
- willthrill81
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Re: Best places to park around 25K?
I see that you haven't been experienced Costco's samples yet!

“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
Re: Best places to park around 25K?
I would do HYSA at 0.60%+ if absolutely sure I will need to money for a down payment soon. Or a CD less than or equal to the expected term.
If I only kinda maybe need the money, I would probably do 80% cash and 20% stocks or REITs.
If I only kinda maybe need the money, I would probably do 80% cash and 20% stocks or REITs.
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Re: Best places to park around 25K?
With bond funds the duration risk is almost entirely one-sided. You have little to win and much to lose.Zillions wrote: ↑Sat Oct 10, 2020 4:13 pm BTW, what are treasuries yielding now? We have an 18 month time period before we need our "downpayment". Any suggestions for me? I did consider corporate bond funds (VWETX) but that may be a stupid move at this time? I'm in a brain fog and would appreciate any "conservative" alternatives at this time.
Thanks!
CDs, savings accounts, i-bonds or sign up bonus hunting are your best options.
44% VTI | 36% VXUS | 10% I-bonds | 10% EE-bonds
- mokaThought
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Re: Best places to park around 25K?
I don't think you'll find any viable options at a brokerage. Besides the low interest rate environment, explaining to my mortgage lender that a brokerage money market account is cash-equivalent was a royal pain for me as of late, and then we still had to transfer it to a credit union to convert it to a cashier's check (because I despise the potential for wire transfers going wrong).
If you are absolutely sure about that 18-month timeframe, the most aggressive I would go is I-bond. There's a $10k per individual purchase limit, and your money is locked up tight for one year. If there's any chance that 18-month wait you mentioned could be shorter, I wouldn't want to have the funds locked up.
The most aggressive I would go is bank CD. Navy Federal, for example, offers a once-per-lifetime-per-individual, 3.50% APY, 12-month share certificate with a $3,000 balance limit. You might find some similar teaser rates elsewhere.
I gave in and went SCV. Wish me luck.
Re: Best places to park around 25K?
Sound like a major hassle to make $500 in a year.ColoRetiredGirl wrote: ↑Sat Oct 10, 2020 4:27 pm I parked $24,999.99 in a checking account at Bellco Credit Union with an APY of 2.25 percent. The hassle is you need to have one monthly direct deposit transaction, one monthly online log in and 15 debit card purchases a month not including ATM transactions. The first two are easy but 15 swipes is a challenge. There are no monthly maintenance fees or balance requirements.
If you do not meet the requirements, the the rate is 0.05 percent APY.
There must be other credit unions with similar products.
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Re: Best places to park around 25K?
You couldn't pay me enough to force me to make 180 swipes a year on debit.