Author Topic: Cash reserves: Keep for possible rental? Or invest/put in Ally Bank?  (Read 516 times)

omega13

  • 5 O'Clock Shadow
  • *
  • Posts: 65
Curious what you guys and gals recommend for my scenario.


I have about 15k in a savings account for personal and future-rental property emergencies. I also have about 60k in a checking account from a cash out refi. I'm looking for a rental property but don't know when it'll happen given the market I'm looking at. This could be in 1 month or 12. Money is currently with local bank earning subpar interest :(.


 I don't know what the best way to organize this money is in the mean time so it doesn't grow as I wait.


Should I:


1. Put it all in an Ally Savings account? Link it to a checking so I can transfer and have it accessible in case any opportunities arise?
2. Put the 15k in Ally, and the rest in VTSAX?
3. Play the leprechaun game i.e...open a bank account, get $300 bonus deals, wait, and then shift the money around :)?


What do you recommend?

bender

  • Pencil Stache
  • ****
  • Posts: 907
Re: Cash reserves: Keep for possible rental? Or invest/put in Ally Bank?
« Reply #1 on: July 16, 2017, 04:37:32 AM »
#1 is a no brainer - I'd do that right away.
#2 is not good unless you don't mind the risk of that 60k becoming 50k (or less) when you need it.
#3 is ok if you want to deal with it.

omega13

  • 5 O'Clock Shadow
  • *
  • Posts: 65
Re: Cash reserves: Keep for possible rental? Or invest/put in Ally Bank?
« Reply #2 on: July 16, 2017, 10:13:38 PM »
Thank you bender. Is Ally still the better choice for an online high yield savings account in your opinion?

bender

  • Pencil Stache
  • ****
  • Posts: 907
Re: Cash reserves: Keep for possible rental? Or invest/put in Ally Bank?
« Reply #3 on: July 17, 2017, 12:09:58 PM »
They are a fine choice and you can't really go wrong there.  I have used them for many years and happy with the service and relative rates.  I think it's at 1.15% for online savings right now.  There may be others that are slightly higher, I haven't done research recently.