Author Topic: money from house sale  (Read 3431 times)

KayakMom

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money from house sale
« on: February 14, 2016, 08:53:33 AM »
We are planning to sell our house and downsize to something smaller and less pricey.  It may be 6-18 months before we buy another house.  I hate to have that money just sitting in almost-0%-interest savings accounts (and I'd have to spread it out at more than one bank if it's over 100K-right?) I don't want to put it in stocks or anything volatile at all because I may need it in a relatively short time frame. 
Any ideas so it's not just sitting there not earning me anything?

Thinkum

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Re: money from house sale
« Reply #1 on: February 14, 2016, 08:59:17 AM »
Banks are FDIC insured up to $250K per account. Secondly, if you will need this money soon, as in less than 5 years time, I would most definitely NOT put it in stocks. You stand the chance of losing money in the short term. If you use online banks like Ally or Capital One 360, you will still earn around .75% interest in their savings accounts. A heck of a lot better than most banks that give you .03% on your deposits. Good luck.

matchewed

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Re: money from house sale
« Reply #2 on: February 14, 2016, 09:01:10 AM »
For that spread of a timeframe savings account(s) is/are your best bet. Unless you know exactly how much you are going to put for your next down payment and the excess can be invested accordingly.

KayakMom

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Re: money from house sale
« Reply #3 on: February 14, 2016, 09:04:49 AM »
Thanks guys for the tips.  I suspected my options were pretty limited with that short time frame.  I just wanted to make sure there wasn't some great idea that I was overlooking. 

Greenroller

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Re: money from house sale
« Reply #4 on: February 14, 2016, 10:03:45 AM »
I was in a similar situation and put it the bank. I assigned my husband and each of my children as a beneficiary to be paid upon my death on the account which insured it an additional 250k per beneficiary. So in total my account that held the funds was FDIC insured for 500k total.

matchewed

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Re: money from house sale
« Reply #5 on: February 14, 2016, 10:11:54 AM »
I was in a similar situation and put it the bank. I assigned my husband and each of my children as a beneficiary to be paid upon my death on the account which insured it an additional 250k per beneficiary. So in total my account that held the funds was FDIC insured for 500k total.

I'm not sure that's correct. From https://www.fdic.gov/deposit/deposits/brochures/your_insured_deposits-english.html

Quote
Note on Beneficiaries: While some self-directed retirement Accounts, like IRAs, permit the owner to name one or more beneficiaries, the existence of beneficiaries does not increase the available insurance coverage.

mustacheme

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Re: money from house sale
« Reply #6 on: February 14, 2016, 10:14:05 AM »
GE Capitol savings accounts are currently paying 1.05%. They might be a good option to look into.

Roots&Wings

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Re: money from house sale
« Reply #7 on: February 14, 2016, 10:49:25 AM »
Capital One savings also has an account opening bonus + the 0.75% annul interest, which for a short time on a larg-ish amount could work outmore than GE Capital Bank or Ally.

MustacheAndaHalf

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Re: money from house sale
« Reply #8 on: February 14, 2016, 11:18:00 AM »
Ally Bank offers 1.00% in their online savings account (0.60% checking).  As to how to work within the $250k limit for FDIC insurance, here's Ally Bank's suggestions:
https://www.ally.com/bank/fdic/

Rubic

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Re: money from house sale
« Reply #9 on: February 14, 2016, 12:39:36 PM »
Here are two links to compare CD rates, depending on your time frame:
If you won't need all the money at once when you buy your next house, you could structure a "CD ladder" so you'll have enough coming in to cover your projected 20% down payment on any given month.