Where to park 600K for down payment?

Apple
stopapare

Go to company page Apple

stopapare
Dec 13, 2021 28 Comments

Any recommendations to park 600K for a down payment in June?
Was thinking vanguard money market fund, but I don’t think it’s given decent returns at the moment. Any reliable high yield savings account? Not sure how often do they pay the dividends, but the fact that I will need to withdraw fairly soon might be a deciding factor.

TC: 500k+

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TOP 28 Comments
  • Google / Eng
    dogfoodie

    Go to company page Google Eng

    dogfoodie
    Find the highest APY you can for a savings account and just be satisfied with that. No sense in putting it at risk to maximize returns.
    Dec 13, 2021 2
  • Google
    BurntEnd

    Go to company page Google

    BurntEnd
    Shop around for HYSA/MM accounts. You could even look at CDs since you know when the money is needed, but I don't know if they're competitive right now.

    HMBradley gives 3% interest on the first $100k if you get a referral.

    To be super safe, keep no more than $250k at any one bank (FDIC insurance limit).
    Dec 13, 2021 1
  • Buy USDC
    Stake on Celsius/crypto.com for 12% APY
    ???
    PROFIT!
    Dec 13, 2021 1
  • 600k for a down payment? Are you buying like a 5million dollar place or just paying a lot up front?
    Dec 13, 2021 8
    • Intuit / Eng
      Multifang

      Go to company page Intuit Eng

      PRE
      Amazon
      Multifang
      You should not tie up that much cash. No reason to pay more than 20% down. Here’s simple math. Put 20% down and take the other $300k and put it in SPY. You can take regular withdrawals from SPY to pay your mortgage payment and still be ahead. Plus if an emergency comes up or you lose your job, you have liquid funds.
      Dec 13, 2021
    • Apple
      stopapare

      Go to company page Apple

      stopapare
      OP
      Definitely a valid point. I did consider it, but since I have a very significant chunk of money already invested on VTI, other stocks, crypto and angel I was leaning towards the bigger down payment, also from what I heard from several lenders, for jumbo loans putting down 40% gives you the best rate.. having said that, if the market continues to perform as it is, that is a more optimal strategy.
      Dec 13, 2021
  • Zoox
    hdDar

    Go to company page Zoox

    hdDar
    Ally Money Market account
    Dec 13, 2021 0