I've finally convinced DW to let me put a portion of our savings in something besides an account at Ally (we are fully funding our retirement accounts, this is just for funds that need to be relatively liquid). It was a lift, her family was badly burned by the stock market and investing in general and her preference was to do nothing outside what FDIC would insure. Getting her to the point where she was OK with me setting up an account with Vanguard was that the first 3,000-5,000 be in some form of US Treasuries. The brokerage account is meant to provide us with a place where a portion of our general savings can grow at better than .85%, but still be accessible without penalty. In theory, it will sit untouched except for once a year when we do our annual "big project" on the house.
Because this has to be relatively liquid I'm looking at index funds/ETFs rather than individual bonds - my question is what term (short, intermediate, etc...) is the best fit given our need for liquidity?
After the first 3-5k the rest will be index funds that I'm still researching, but I'm open to suggestions on that as well.