Home Downpayment Saved! Where to Invest Until I Buy?

[MrFiGuy]

Hello Mustachians, I am new to this forum- and newish to learning about mustachian ways. Anyways, I am 27 years old and work as an auditor for a pubic accounting firm. Sadly, even though I work with money all day, I often lack the confidence to know what to do with my own money.

Here's the question. I have saved $30k for a home downpayment, which is currently sitting in my checking account. I won't actually buy a house for another year or so, when I have a more permanent work situation. I want to put this money somewhere that I can earn some type of return, so I'm thinking either a higher interest savings account such as Ally or investing it in a bond index fund. Which one do you think is a better option? Thanks in advance for any advice. Jared

[GizmoTX]

You want preservation of your capital. Any index fund, bond or stock, puts your money at risk. Search for an online CD paying the highest rate. We like Ally, Synchrony, & CIT.

[MrFiGuy]

Thanks. I guess even though a bond index fund is less risky than a stock index fund, it is still putting my capital at risk. I think I will just put the money in an Ally savings account, since it has 1% APY compared to 1.05% APY on the one year CD. Then I have more flexibility as to when I can withdraw and use the money.