Investment suggestion for 120k

Microsoft $$|$$
Feb 10 43 Comments

I have 120k in cash i was saving as downpayment for the house. As it may take me another 6 months to a year to buy one, what should i do with it ?

Invest in index funds or should I keep it in CDโ€™s or keep in savings account with decent interest ? Any other suggestions welcome.

Please no trolls like โ€œyou can give me the moneyโ€

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TOP 43 Comments
  • Google / Eng catburglar
    CDs are pretty safe.
    Feb 10 2
    • Microsoft $$|$$
      OP
      Thanks any particular recommendation about the banks ?
      Feb 10
    • Apple 88812122
      Marcus by goldman
      Feb 10
  • Tinder sudormrf/
    I would consider a money market account
    Feb 10 5
    • Microsoft $$|$$
      OP
      Money market funds are usually not insured by fdic right ?
      Feb 10
    • Tinder sudormrf/
      I believe that they can be but Iโ€™m not really sure. I only used one for a brief period before moving the money.
      Feb 10
    • Capital one 360 money market is FDIC insured up to $250,000 and carries a 2.00% interest rate. I think you're confusing money market accounts and money market funds, the latter of which is not FDIC insured.
      Feb 10
    • The Home Depot dytA68
      Discover give 2 % on savings
      Feb 10
    • Pure Storage fupaymoi
      Purepoint financial has an fdic insured savings account currently paying 2.35%. I don't think CDs are a good idea, because what if you happen to find the perfect house next week? Keep your down payment liquid so you don't have to stress about the timing of your closing. CDs barely pay more interest than the good online savings accounts anyway.
      Feb 10
  • Cash flow - buy multi family apartments.
    Feb 10 0
  • Apple hbdeegbbot
    If you want it back to buy a house in 12 months or less, get something that cannot go down, and allows you to cash out in less than one year. Not a lot of choices out there really.
    Feb 10 3
  • Google AynRand
    I have been in your shoes.

    #1. TBills
    #2. High interest savings account
    #3. CDs

    Tbills are also state tax deductible
    Feb 10 0
  • Muni bonds give tax free stable growth
    Feb 10 3
  • New YEDF60
    Bitcoin
    Feb 10 1
  • Microsoft $$|$$
    OP
    Thanks for all the suggestion. Going to research based on all the useful answers here. Great to see so many people helping out without any trolling ๐Ÿ‘
    Feb 10 0
  • Google / Eng gdjsg
    CDs won't make sense with difference of interest being very low
    Savings at 2.2 vs CD at 2.6
    If you suddenly find a house in 9 months you would end up paying 6 months penalty for withdrawing a CD
    Feb 10 0
  • LinkedIn Learn[in]
    If you are Indian, move money to India FCNR account for 4% interest tax free. Cash will still be in USD and you can repartriate it back.
    Feb 10 2
    • Microsoft Influencer
      How is it tax free , please explain
      Feb 11
    • Google AynRand
      It isnโ€™t tax free. This idiot will get caught. Btw india has started sharing info with the US. Be careful
      Feb 11
  • LinkedIn harveyswe
    Online savings accounts, CDs, treasury bonds, or money market funds for the money you need in less than 2 years. Read the section on short-term investments here: www.firetobiz.com/investing-basics
    Feb 12 0
  • Infinera / Eng hightime84
    r/wallstreetbets can help /s
    Feb 10 0
  • Microsoft coffeeguy1
    You might want to consider 1mo treasury bills, they give 2.43 right now, are very liquid, no transaction costs on treasury direct or fidelity and given that the Fed will not raise rates anything soon you should be safe. Please note tbills are not fdic insured.
    Feb 10 0
  • Intel bob_swan!
    Goldman Marcus savings is like 2.2% and very easy to use. Where I stash my waiting-to-deploy cash...
    Feb 10 0
  • Apple / Eng vklz18
    You should consider a CD or Moneymarket account to save this money. check out nerdwallet or bankrate.com . They have good recommendations for CDs and /or Money market accounts and their rates . Notable ones include Marcus, Ally, Capital One, CIT bank
    Feb 10 0
  • New / Other AuntHilda
    I recommend either of the following: Capital One money market account that pays 2% annually and you can withdraw the funds whenever. Sallie Mae 12 months CD that pays 2.85%.
    Feb 10 2
    • Is Sallie Mae reliable?
      Feb 10
    • New / Other AuntHilda
      What makes you think it isn't reliable? Also, it is FDIC secured so if a hits the fan, you are covered for up to $250k which is less than what OP wants to invest in.
      Feb 11
  • Amazon / Eng tylium
    Keep it simple. Ally savings account. 2%.
    Feb 10 1
    • Qualcomm covfeefe
      Ally is at 2.2% these days
      Feb 11
  • Bank of America Quackers
    Merrill Edge Guided Investing
    https://www.merrilledge.com/guided-investing
    Feb 10 1
    • Google chamiyaa
      At 0.45% fees, I'd pass and go with either a balanced fund such as Vanguard LifeStrategy or target date; or go with vanguard VPAS (0.30%) or Schwab SIP (free, plus cost of idle Cash which that require, likely equivalent of around the 0.20-0.30 expense)
      Feb 10
  • Airbnb RQFr68
    Barclays savings offers 2.20%
    Feb 11 0
  • New / R&D
    rgo

    New R&D

    PRE
    Amazon
    rgomore
    interactivebrokers gives you interest on cash as long as you have more than 100k
    Feb 10 0