I'm in this exact situation. I had cash from a house sale in Spring 2015, and thought I would buy a house this spring, but now it looks like it will be 2017. I split the money into a CD making 0.66% at USAA and BND and BSV bond funds, mostly because I was curious, but also because earning less than 1% seemed ridiculous. It has done well, the total balance is up 1.5% in 8 months (2.2 apy ?), which is great, but I've changed my outlook since I started, and I no longer think chasing a point is worth risking any of the principle over such a short time. Those bond funds could drop 1-2% at any time, wiping all the gains out, or more, which is more ridiculous. When the CD matures in a a week I'm pulling the full amount out of that account and opening a new account at Ally. 1% guaranteed and totally liquid is better, imho.