Place to store money for future house deposit in the next 3 to 6 years

[Albatross]

Hi all, where is a good place to store money that I might need in the next 3 to 6 years? There are obviously no good high savings rates accounts and I still want the money working for me.

I thought about bonds but I'm based in Hong Kong and could not locate any appropriate bonds or bond funds.

What are your thoughts on dumping cash in utility type stocks that pay a decent dividend (approx. 6.5%) but with generally less volatility? I have a fairly strong risk appetite,  but obviously would be bummed if my money lost huge amounts of value by the time i needed to withdraw (for a house).

For info my networth comprises about US$1.1m in US and Asia index funds (which i do not intend on ever selling)  US$80k in utility stocks (treated as a high savings rate account with some risk) and US$25k in cash.
I am aware that generally one should not invest in equities if that money is needed within the next 5 to 10 years.

Thanks!

[MustacheAndaHalf]

It's not guaranteed, but you could invest in "low volatility" stocks through an ETF.  You might equal weight U.S. and international to approximate the world's stock markets:
https://finance.yahoo.com/quote/USMV/performance?p=USMV
https://finance.yahoo.com/quote/EFAV/performance?p=EFAV

Some mutual funds shift their allocation to lower equities in retirement, and that tactic might apply to home buying.  Ultimately when you start looking for a place to buy, the money should be 100% cash so it's available for the real estate transaction.

[Albatross]

Thank you MoustacheAndaHalf.

The problem is we will probably not but for another 3 to 6 years and networth stocks are too risky whilst bank accounts are just pathetic,  so for the time being it seems low volatility dividend paying stocks might be ok,  and once we get serious about buying will cash out.

[Dicey]

You're not in the US so I doubt that this opportunity exists for you, but for the benefit of anyone else who's in a similar situation stateside, I recommend chasing bank account bonuses. An organized person with cash on hand can do far better than regular savings account rates.

https://www.doctorofcredit.com/best-bank-account-bonuses/

https://forum.mrmoneymustache.com/share-your-badassity/bank-account-churning-how-to-make-$1600-in-a-year-by-being-organized/350/

[ChpBstrd]

A collar strategy might be a good way to collect dividends for a few years while eliminating the risk of a big market blowup wiping out your house fund. Sometimes, these can be set up to be costless.

https://www.theoptionsguide.com/the-collar-strategy.aspx

With a collar, you could wade into more volatile stocks / funds and not have to worry. So you're not limited to utilities this way.