Money

Investment suggestion for 120k

Microsoft $$|$$
Feb 10

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 CD’s or keep in savings account with decent interest ? Any other suggestions welcome.

Please no trolls like “you can give me the money”

comments

Add a comment
  • Google / Engcatburglar
    CDs are pretty safe.
    Feb 102
    • 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 105
    • Microsoft $$|$$
      OP
      Money market funds are usually not insured by fdic right ?
      Feb 10
    • Tinder sudormrf/
      I believe that they can be but I’m not really sure. I only used one for a brief period before moving the money.
      Feb 10
    • Amazon Kibana 👑
      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 100
  • 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 103
    • Microsoft $$|$$
      OP
      Just keeping it in my savings does not give me any interest :(
      Feb 10
    • Ally bank has very good interest rates
      Feb 10
    • Microsoft 🚙〰️
      Discover saving account has similar interests rate
      Feb 10
  • Google AynRand
    I have been in your shoes.

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

    Tbills are also state tax deductible
    Feb 100
  • Muni bonds give tax free stable growth
    Feb 103
    • Intel bxsnlns
      Yes, mine is with Franklin Templeton
      Feb 10
    • Microsoft 🚊🎱⚾️
      What's the rate?
      Feb 10
    • Intel bxsnlns
      Varies per state. Last time i checked it was 4%
      Feb 11
  • New YEDF60
    Bitcoin
    Feb 101
  • 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 👍
    Feb 100
  • Google / Enggdjsg
    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 100
  • 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 102
    • Microsoft Influencer
      How is it tax free , please explain
      Feb 11
    • Google AynRand
      It isn’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 120
  • Infinera / Enghightime84
    r/wallstreetbets can help /s
    Feb 100
  • 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 100
  • Intel bob_swan!
    Goldman Marcus savings is like 2.2% and very easy to use. Where I stash my waiting-to-deploy cash...
    Feb 100
  • Apple / Engvklz18
    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 100
  • New / OtherAuntHilda
    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 102
    • Microsoft 🚊🎱⚾️
      Is Sallie Mae reliable?
      Feb 10
    • New / OtherAuntHilda
      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 / Engtylium
    Keep it simple. Ally savings account. 2%.
    Feb 101
    • Qualcomm covfeefe
      Ally is at 2.2% these days
      Feb 11
  • Bank of America Quackers
    Feb 101
    • 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 110
  • New / R&D
    rgo

    NewR&D

    PRE
    Amazon
    rgomore
    interactivebrokers gives you interest on cash as long as you have more than 100k
    Feb 100
  • Amazon god
    🍿
    Feb 100
  • Microsoft JackMa876
    Capital one 360 account money market gives you 2%. Another option is to buy brokered CDs from fidelity. Buy 2 month CD and set on auto renewal. You should earn around 2.25% annual rate going by current rates
    Feb 100
  • Bank of The West
    GSW

    Bank of The West

    PRE
    Cisco, eBay, NetApp, VMware
    GSWmore
    Discover online account for 2.1%. Chase has some good CD options, check with local branch.
    Feb 100

Download the app for more exclusive content.