Author Topic: 120k our of market for house deposit - where to hold it for 6 months?  (Read 950 times)

dfree86

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Hey Mustache folks,

Quick one here. I just took about 120k out of the market because it's earmarked for a house down payment and/or renovations that I should be making sometime within the next 6 months.

My questions is: where should I keep it in the meantime? My wife has a credit union savings account that has 1.1% APY. Or I could open a Capital One 360 which has a .75% APY.

Again, the money isn't likely to be in there for a long time, but since it's out of the market I'd like it to be doing some work for me. Is there an option I'm missing here or is the Savings account the way to go?

Isn't there sometimes a limit on how much you can withdraw from a Savings account at any one time?

Thanks!


Proud Foot

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Re: 120k our of market for house deposit - where to hold it for 6 months?
« Reply #1 on: January 26, 2017, 12:22:08 PM »
I would just stick with your wife's credit union savings account.  Its a better interest rate and some credit unions pay out bonuses at the end of the year based upon various factors, one possibly being interest earned on deposit accounts.  As far as a limit on amount you can withdraw from a savings account, I do not know of any regulatory limits although it is possible the credit union may have a policy that does.

frugaliknowit

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Re: 120k our of market for house deposit - where to hold it for 6 months?
« Reply #2 on: January 26, 2017, 02:26:10 PM »
You can try to boost the yield on a portion of the money by managing it in a super high yield checking account where you "jump through hoops" by making debit card purchases and e-statements only (build a firewall around the principal so you don't co-mingle).  You should be able to earn 2.5% on about $25K, which brings you an extra $30 per month.  Might not be worth the administrative effort...

https://www.depositaccounts.com/kasasa/