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Best Place To Park Some Cash
Old 08-31-2004, 07:01 AM   #1
 
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Best Place To Park Some Cash

We are selling our current home and are going to rent a house for about a year or two as we decide where we want to settle permantly and build a new house. Where would be the best place to put the money we get from the sale of our house (will be about 650-700K) that we get a good rate and is safe. I was looking at a ING money market account - does anyone know anything about these? thanks for any opinions and advice.
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Re: Best Place To Park Some Cash
Old 08-31-2004, 07:42 AM   #2
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Re: Best Place To Park Some Cash

I use ING to park cash. They currently pay 2.2% on savings account money, and it is FDIC insured. If you want FRDIC protection for the full amount you have, you will need to split it up into different banks to avoid the $100k limit. Look around and you will find a number of banks with high savings rates. Alternatively, you could go to a small local bank and try to negotiate with them. Often, the little banks will play with you in order to attract funds.
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Re: Best Place To Park Some Cash
Old 09-02-2004, 11:40 AM   #3
 
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Re: Best Place To Park Some Cash

Hello rsboone,

$650K is a quite a a lot of cash to put in a money market fund for 2 years. Consider increasing your yeild using CDs (ING 2 year yeilds 2.875%). I'd even allocate some (like 15%-30%) to a short term bond fund like Vanguards Investment Grade Fund (yeilding 2.95%). This fund has an average duration of 1.8 years.

-JB
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Re: Best Place To Park Some Cash
Old 09-02-2004, 02:35 PM   #4
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Re: Best Place To Park Some Cash

If safe to you means FDIC insured, then check out your local credit union. Most deposit accounts are only insured for $100k, but some credit unions got together and formed a network.... basically, they will automatically create accounts for you at all the different banks, and put $100k in each.... so your full deposit is insured. The nice thing about it is that you don't need to go to each branch to access your full deposit amount, you simply do it from a single local CU branch. Having significantly less than $100k in cash, this issue has never come up for me personally....

Don't bond funds decrease in value as rates rise?
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Re: Best Place To Park Some Cash
Old 09-02-2004, 04:44 PM   #5
 
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Re: Best Place To Park Some Cash

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Don't bond funds decrease in value as rates rise?
Yes, and it depends on the duration of the bonds held in the fund. A short term fund has less 'interest rate' risk because the fund is always purchasing new bonds at the higher rate as the bonds in the portfolio mature.

The risk that housing prices rise is more significant than the investment risk in an ultra conservative portfolio of short term bonds and money market funds. In fact, an even higher allocation to short term (or even longer) bonds might make sense given that housing prices are inversely correlated with interest rates. If rates rise, you may lose a little on the ST bonds, but the house will be cheaper. If rates fall or stay the same, housing prices could increase substantially over two years.
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Re: Best Place To Park Some Cash
Old 09-02-2004, 05:15 PM   #6
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Re: Best Place To Park Some Cash

My credit union is still offering 3% 11 month cd's if you open an account and direct deposit to them. I think its 2.75% without direct deposit.

Costs $8 to join some non profit group to be eligible. They even have an application that lets you apply to both the eligibility group and apply for an account at the same time.

Good rates, everything is free, good online banking options.

www.dcu.org (main page)

https://www.dcu.org/DCU_aapd_application.pdf (application)

Been with them for 22 years. Its almost hard to believe that someone could make it 22 years without pissing me off one way or another, but they have.
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Re: Best Place To Park Some Cash
Old 09-02-2004, 05:24 PM   #7
 
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Re: Best Place To Park Some Cash

As of today I am still getting 3% on my checking account.
Two (2) years now and continuing. The promo period has run out now but they continue to pay the 3% so far.
As soon as they drop it I will move the money.
I have a spot lined up where I can get 2.5%, which
still ain't bad!

John Galt
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Re: Best Place To Park Some Cash
Old 09-02-2004, 06:23 PM   #8
 
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Re: Best Place To Park Some Cash

Wow, I wish I could find the deals that you guys find. Unfortunately I'm not eligible to join TH's credit union.
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Re: Best Place To Park Some Cash
Old 09-02-2004, 08:52 PM   #9
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Re: Best Place To Park Some Cash

You sure are eligible. Everybody is.

The application I linked to has you sign up for an account and become a member of the american disabilities something-or-other organization. By becoming a member of that org ($8 to join), you become eligible to become a member of the credit union.

Once you're a member, you're a member as long as you wanna be, whether you stay a member of the other organization or not.

If you just hate disabled americans then theres some other 'conservancy' group you can join instead for about $30 that will also enable you to be a member.

I dont get any bonuses if you sign up or anything, I just really like 'em, and their rates and deals are great. You can also get a cheap home equity line of credit (currently 4%) with no costs to get it. Fill out a short app online, a notary comes to your house with the paperwork a month or so later, and shazam.

Plus you get to call 'em up and listen to their cool boston accents.
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Re: Best Place To Park Some Cash
Old 09-02-2004, 10:07 PM   #10
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Re: Best Place To Park Some Cash

You must be a beantown native. Who else would call "Pahk the cah in the Hahvahd Yahd" a cool accent?
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Re: Best Place To Park Some Cash
Old 09-03-2004, 12:26 AM   #11
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Re: Best Place To Park Some Cash

I'm afraid so.
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Re: Best Place To Park Some Cash
Old 09-07-2004, 05:59 PM   #12
 
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Re: Best Place To Park Some Cash

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You sure are eligible.
Thank you Towm.

I'll be parking some cash over there.



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Re: Best Place To Park Some Cash
Old 09-08-2004, 07:03 PM   #13
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Re: Best Place To Park Some Cash

I know my idea won't help rsboone with his "problem". He's got entirely too much cash. Sorry bout that rs. Wish I had that problem. I'm looking at adding to my meager investment in I-bonds ($30K max online purchase per year). They're paying 3.39% if I read it correctly. Any comments on the downside of that idea?

http://www.treasurydirect.gov/indiv/...nds_glance.htm
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Re: Best Place To Park Some Cash
Old 09-08-2004, 11:27 PM   #14
 
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Re: Best Place To Park Some Cash

I did it. ANd plan to add more next year.
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Re: Best Place To Park Some Cash
Old 09-09-2004, 07:41 AM   #15
 
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Re: Best Place To Park Some Cash

Is this a good bank to place some cash?

http://www.mlnbank.com/prem_cds.html
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Re: Best Place To Park Some Cash
Old 09-09-2004, 10:55 AM   #16
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Re: Best Place To Park Some Cash

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Is this a good bank to place some cash?

http://www.mlnbank.com/prem_cds.html
This appears to be an off-shore bank. It doesn't look like the principal is insured, so you takes your chances.

MJ :-/
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