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Parking my cash for up to a year
Old 02-10-2014, 06:04 PM   #1
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Parking my cash for up to a year

I need to park a big chunk of cash for 3 to 12 months. Want to keep the risk minimal. Suggestions?
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Old 02-10-2014, 06:06 PM   #2
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If you're not sure of the time frame in which you'll need it I'd just put it in a regular savings account. Immediate accessibility, no risk, no interest either.

If you're sure of the time frame a CD would be slightly better but unless the amount is very large the difference won't be significant.
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Old 02-10-2014, 06:16 PM   #3
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I need to park a big chunk of cash for 3 to 12 months. Want to keep the risk minimal. Suggestions?
6 month CD
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Old 02-10-2014, 06:43 PM   #4
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Ally is offering .87% for a savings account. Their one year CD is only .99%, so it hardly seems worth it to lock it up in a CD for such a small extra amount of yield if the max time frame is one year.
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Old 02-10-2014, 06:59 PM   #5
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Yep, you can get 0.85% in a high yield savings account with immediate access to your money.

We use American Express Bank FB
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Old 02-10-2014, 07:11 PM   #6
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I've got our cash we'll be spending on college expenses and some planned renovations for the next 2 years at Ally Bank. For us it is the best tradeoff between interest rate, flexibility, and protection.
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Old 02-10-2014, 09:17 PM   #7
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Why not one of those rewards checking accounts a few credit unions offer? Some of them allow up to $25,000 at 3%
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Old 02-11-2014, 07:49 AM   #8
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Why not one of those rewards checking accounts a few credit unions offer? Some of them allow up to $25,000 at 3%
Please provide links to those institutions that offer 3% checking accounts.
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Old 02-11-2014, 07:51 AM   #9
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I use Ally for short term cash too.
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Old 02-11-2014, 11:03 AM   #10
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I guess many will say this option carries too much risk but I would suggest considering a short term corporate bond fund. VCSH currently yielding approx 1.7%
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Old 02-11-2014, 11:25 AM   #11
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Ally or a similar bank is probably what you want.

For slightly longer periods I've been using FGMNX, a Fidelity Ginnie Mae fund. The current yield is 2.23%. The NAV moves pretty slowly, but it can still move enough to wipe out your yield. It's a little high right now to be dumping a big lump sum into it.
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Old 02-11-2014, 03:24 PM   #12
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GE Capital Retail Bank has a 15 month CD FDIC insured for 1.15%.
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