Author Topic: Best Place for Short Term (3-4 Month) Growth of "Extra" School Funds?  (Read 2065 times)

alex.wilsonii

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My wife is a current student and while we have very little debt currently, we were forced to take out some student loans in order to get her through this year. The school disburses the loan amounts in equal amounts only each semester, even though some semesters we'll only have to pay for 1 class and some we'll pay for 3.

So, we took out as little as possible, but just enough to cover the year. That being the case, we ended up with about $4,000 "extra" sitting around this semester because she's only in 1 class. However, we know for sure we'll need that $4,000 next semester when we have to pay for 3 classes (we'll need what we get disbursed from the school next semester, plus the $4,000 "extra" here).

I feel like just having that $4,000 sitting in normal a savings account probably isn't the best way to let it work for us for the next 3-4 months, however, I also need to make sure it's easily accessible in that short amount of time so we can use it for her school and that we don't lose any significant amount of it.

So, here's my question. Where's the best place to "invest" the money for now such that we get the most benefit out of it in such a short amount of time? Or should I just leave it in the savings account since in that amount of time we're not likely to see much growth anywhere else anyway?

Thanks!

jpo

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FDIC-insured Certificate of Deposit (CD).

You won't get much but it's better than nothing.

MrSaturday

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Your best bet for that time period is TIAA, as long as the 1.25% interest rate lasts.

Guitarguy

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Edit: probably should've read your whole post. Stupid mobile phones.
« Last Edit: May 26, 2012, 12:09:38 AM by Guitarguy »

alex.wilsonii

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Oh, nice. Though I'm not really sure the TIAA 1.25% rate is really worth the move for such a short time period over the the 0.85% I've got already with my current savings account. Still, definitely worth a look, thanks to all for the responses!