Author Topic: Need advice on where to store cash for ~6 months!  (Read 735 times)

SmileAllDay

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Need advice on where to store cash for ~6 months!
« on: October 13, 2018, 06:25:12 AM »
First off, I want to say thanks to everyone here for the incredible advice. It's just amazing to scroll through.

My issue is that I want to buy a rental property soon-ish but not soon enough to justify keeping the down payment in a checking.

I'm hoping 6 months, give or take. So, not long enough for a CD or something like that.

Would an online bank like CIT with a better interest rate be smartest, IYO?

I've read here about people cycling cash through new checking different accounts they open to get the ~$200 bonuses before taking it out. I'm sure you would need to keep it in these accounts for more than 6 months though?

It's approx. $30k.

Thanks so much in advance, and I'm open to all options!

MDM

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Re: Need advice on where to store cash for ~6 months!
« Reply #1 on: October 13, 2018, 11:32:10 AM »
For your "no risk" money, you might consider one of these online banks:           
   http://www.magnifymoney.com/blog/earning-interest/best-online-savings-accounts275921001     

jamaicaspanish

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Re: Need advice on where to store cash for ~6 months!
« Reply #2 on: October 13, 2018, 11:44:01 AM »
Lake Michigan Credit Union -- max checking
3% on up to 15k
Minimum requirements (monthly transfer + 10 point of sale transactions - we do Amazon gift cards).
Easy peasy.

Another Reader

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Re: Need advice on where to store cash for ~6 months!
« Reply #3 on: October 13, 2018, 11:53:56 AM »
Buy four week and 13 week treasuries at auction in a brokerage account.  Yields are superior to high yield savings accounts and are state and local income tax-free.

SmileAllDay

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Re: Need advice on where to store cash for ~6 months!
« Reply #4 on: October 14, 2018, 02:51:36 AM »
Terrific, I appreciate the help and always!

GrumpyPenguin

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Re: Need advice on where to store cash for ~6 months!
« Reply #5 on: October 15, 2018, 05:27:12 AM »
If you're looking for easy and already have a Vanguard account, I like VMMXX. Vanguard Prime Money Market.  It's yield is 2.18% as of today, which appears to be a tad better than the 4 week treasury bill rate, and (to me at least) less hassle.

isaakthepirate

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Re: Need advice on where to store cash for ~6 months!
« Reply #6 on: November 18, 2018, 12:27:43 PM »
I am holding our downpayment savings in a CIT account. So far so good. Easy and I think at 1.8% now. Vanguard money market also good.