Parking my cash for up to a year

[Dolphin Boy]

I need to park a big chunk of cash for 3 to 12 months. Want to keep the risk minimal. Suggestions?

 

[Walt34]

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.

 

[Spanky]

I need to park a big chunk of cash for 3 to 12 months. Want to keep the risk minimal. Suggestions?

6 month CD

 

[Ready]

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.

 

[audreyh1]

Yep, you can get 0.85% in a high yield savings account with immediate access to your money.

We use American Express Bank FB

 

[jollystomper]

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.

 

[Greencheese]

Why not one of those rewards checking accounts a few credit unions offer? Some of them allow up to $25,000 at 3%

 

[Spanky]

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.

 

[Midpack]

I use Ally for short term cash too.

 

[sonomaguy]

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%

 

[Animorph]

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.

 

[phil1ben]

GE Capital Retail Bank has a 15 month CD FDIC insured for 1.15%.