Where to put money while saving for a downpayment?

[JeffC]

I searched the forums and I must be doing it wrong or something because I would bet there are numerous threads on this topic, but maybe not. 

I am in the paying off student loans/saving up a downpayment for a house phase of life and due to some serious career advances, a lucrative side hustle and some amped up Mustacian efforts, Over the past 4 months I have amassed about 10k of the 25k I'm trying to save up for a downpayment. It is just sitting there in my Chase savings account. My green employees are on furlough.  Where should I put them to work?  Do any of you have some favorite high yield, but still liquid investment strategies?

[SporeSpawn]

I think the basics are that it depends on your timeline. If you plan to use the money soon (within, like, a year or so), then a savings account or something is just as good as anywhere because it's coming out too soon to matter. If you plan to use it in five years or so, then putting it into bonds will give it some growth without risking lost. If you plan to use it in ten years or so, then stocks or a mix would be fine provided you start to move it into bonds/savings closer to the time of purchase.

Since you only need 15k left, it sounds like you are pretty close, so stocks are out. I you're going to wait a few years, you might put it into bonds or something similar.

[matchewed]

Repeat after me, "Even bonds have risk for loss."

To state that they don't means you might not know/understand the risks with bonds (rising interest rates can provide negative returns [loss] for bonds). In a low interest rate environment the interest rate can remain low or start to increase (I guess go further down is an option but probably the least likely of the three).

JeffC, you're trying to merge two different behaviors. Saving for a purchase and investing for the future. One is done through a savings account or some other guaranteed vehicle, the other through traditional investment options such as bonds/equity/real estate/entrepreneurship. Your green employees need to be available for the home purchase. If you're comfortable with taking the risks of not necessarily having the cash available to buy a home that fits your particular criteria feel free to gamble the money (it's not seriously gambling, it would be better stated to say risk the money). But if you want the money liquid for a purchase then CD's or savings accounts are the way to go. I would separate out the saving for a soon purchase from saving for a super long term thing like FIRE.

[surfhb]

Keep it in a safe place and don't worry about your loss to inflation.   It's going towards your future home.....it's already working for you :)

[Dodge]

You were able to quickly save up 10k, and your goal is 25k, you'll likely hit your mark in well under a year.  While I don't think bond risk should be a concern, I agree with the recommendation to keep it in a savings account.