The Money Mustache Community

Learning, Sharing, and Teaching => Reader Recommendations => Topic started by: SmileAllDay on October 13, 2018, 06:25:12 AM

Title: Need advice on where to store cash for ~6 months!
Post by: SmileAllDay on October 13, 2018, 06:25:12 AM: First off, I want to say thanks to everyone here for the incredible advice. It's just amazing to scroll through.

My issue is that I want to buy a rental property soon-ish but not soon enough to justify keeping the down payment in a checking.

I'm hoping 6 months, give or take. So, not long enough for a CD or something like that.

Would an online bank like CIT with a better interest rate be smartest, IYO?

I've read here about people cycling cash through new checking different accounts they open to get the ~$200 bonuses before taking it out. I'm sure you would need to keep it in these accounts for more than 6 months though?

It's approx. $30k.

Thanks so much in advance, and I'm open to all options!
Title: Re: Need advice on where to store cash for ~6 months!
Post by: MDM on October 13, 2018, 11:32:10 AM: For your "no risk" money, you might consider one of these online banks:
http://www.magnifymoney.com/blog/earning-interest/best-online-savings-accounts275921001
Title: Re: Need advice on where to store cash for ~6 months!
Post by: jamaicaspanish on October 13, 2018, 11:44:01 AM: Lake Michigan Credit Union -- max checking
3% on up to 15k
Minimum requirements (monthly transfer + 10 point of sale transactions - we do Amazon gift cards).
Easy peasy.
Title: Re: Need advice on where to store cash for ~6 months!
Post by: Another Reader on October 13, 2018, 11:53:56 AM: Buy four week and 13 week treasuries at auction in a brokerage account. Yields are superior to high yield savings accounts and are state and local income tax-free.
Title: Re: Need advice on where to store cash for ~6 months!
Post by: SmileAllDay on October 14, 2018, 02:51:36 AM: Terrific, I appreciate the help as always!
Title: Re: Need advice on where to store cash for ~6 months!
Post by: GrumpyPenguin on October 15, 2018, 05:27:12 AM: If you're looking for easy and already have a Vanguard account, I like VMMXX. Vanguard Prime Money Market. It's yield is 2.18% as of today, which appears to be a tad better than the 4 week treasury bill rate, and (to me at least) less hassle.
Title: Re: Need advice on where to store cash for ~6 months!
Post by: isaakthepirate on November 18, 2018, 12:27:43 PM: I am holding our downpayment savings in a CIT account. So far so good. Easy and I think at 1.8% now. Vanguard money market also good.