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Learning, Sharing, and Teaching => Investor Alley => Topic started by: bsmith on February 09, 2019, 12:02:29 PM

Title: What to do with cash on hand
Post by: bsmith on February 09, 2019, 12:02:29 PM
I have quite a bit of cash on hand while saving for a house - about 75k. I've looked at Doctor of Credit, but it's too much information. Is there a simpler version of how to use this money? I figure I'll have a home account at Ally Bank. Beyond that, are there some steps outlined for when you're starting out? I've done travel hacking, so maybe I got spoiled by the ease of the travelmiles site. That's just Chase, Chase, Chase. Anyone know of a step by step guide? Maybe there's one on that site, but I missed it.

Or, maybe I should just keep it all at Ally. I'll have to put some elsewhere when it hits 100k though.
Title: Re: What to do with cash on hand
Post by: JAYSLOL on February 09, 2019, 10:02:14 PM
A bit more information might help get good advice from folks here.  How much house are you planning to buy?  How much do you plan to need to save in advance for that?  How long until you plan to buy?  What rate are you getting at Ally? 
Title: Re: What to do with cash on hand
Post by: HBFIRE on February 09, 2019, 10:28:54 PM
I've been keeping my cash reserves with Heritage Credit Union @ 3.3%.  With 75 K, you'd have to have a few accounts (max is 25 K for each), but they do allow multiple accounts.  If you don't want the hassle, a high yield savings is perfectly fine for a house down payment fund.  Trying to squeeze out an extra 0.5-1% for a short term fund probably isn't worth too much hassle.  Depending on the time horizon, you could also look into a CD.
Title: Re: What to do with cash on hand
Post by: 2Birds1Stone on February 10, 2019, 05:16:46 AM
Recently dump a mid 5 figure amount into 14 month Ally CD @ 2.85%
Title: Re: What to do with cash on hand
Post by: COEE on February 10, 2019, 06:36:57 AM
Ally is a fine place to store short-term cash.

I made this (https://forum.mrmoneymustache.com/investor-alley/where-should-you-put-your-short-term-investment-money-(0-2-years)/) post some time back which outlines some of the better options.
Title: Re: What to do with cash on hand
Post by: soccerluvof4 on February 10, 2019, 09:28:22 AM
For simplicity if your in Vanguard there VMMXX as of January 1st was paying 2.45% and I believe has gone up a bit since AND its not locked up.