Author Topic: Short term money parking ($150k). Any suggestions?  (Read 2924 times)

CowboyAndIndian

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Short term money parking ($150k). Any suggestions?
« on: September 09, 2016, 02:06:43 PM »
I just sold a rental property and have got about $150k in cash sitting in my checking account.

I plan to use this cash to buy a condo which is being constructed (expect closing around end of January 2017).

Where can I keep this money for the next 4 months where I can earn some money? My bank accounts pay little or no interest.

Any suggestions?


CanuckExpat

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Re: Short term money parking ($150k). Any suggestions?
« Reply #1 on: September 09, 2016, 02:15:16 PM »
If you find good suggestions, I'd like to know as well.
Ally Online Savings pays about ~1%. Not great, but best I can do now, without jumping through hoops

mountains_o_mustaches

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Re: Short term money parking ($150k). Any suggestions?
« Reply #2 on: September 09, 2016, 02:52:27 PM »
I second the Ally bank recommendation.  SO and I are saving for a downpayment on a house and we're keeping money in an Ally account and getting about 1% interest - which is way better than what our local bank offers.  We considered CDs or other short-term options, but the interests rates weren't much better (if better at all) than the 1% at Ally and the money is still liquid there.  Although, if anyone's found a bank with a higher interest rate I'd be interested in hearing about it!

MDM

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Re: Short term money parking ($150k). Any suggestions?
« Reply #3 on: September 10, 2016, 12:38:59 PM »
http://www.magnifymoney.com/blog/earning-interest/best-online-savings-accounts275921001 has been updating ~monthly with exactly this type of suggestion.

csprof

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Re: Short term money parking ($150k). Any suggestions?
« Reply #4 on: September 10, 2016, 12:51:14 PM »
I just sold a rental property and have got about $150k in cash sitting in my checking account.

I plan to use this cash to buy a condo which is being constructed (expect closing around end of January 2017).

Where can I keep this money for the next 4 months where I can earn some money? My bank accounts pay little or no interest.

Any suggestions?

Others have already suggested Ally Savings.  I use it.  I like it.  It's very safe.  It's 1%.  It's hard to go wrong.

If you are willing to risk a bit more volatility in exchange for more income, you might look at, in order of increasing volatility:

 - Vanguard VFSUX  (short-term bond;  taxable)
 - Vanguard VMLTX (limited-term tax exempt)
 - Vanguard VWIUX (medium-term federal tax-exempt municipal bonds)

The tax exempt options are nice if you're in a >= 30% tax bracket, otherwise, it's not as worthwhile.

CowboyAndIndian

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Re: Short term money parking ($150k). Any suggestions?
« Reply #5 on: September 12, 2016, 08:19:16 AM »
Thanks everyone. Lots of good suggestions.

Since I need to close by Jan/Feb, I think I will go with the Ally suggestion.