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Tree-dweller 09-26-2014 08:29 AM

Best Place to Squirrel Away $100K Short-term
 
Getting ready to sell our vacation home, and expecting to wind up with about $100,000 after payoffs and taxes. As we are hoping to move within 6 months and use this toward the new (primary) place, we want to keep it fairly liquid. For now we are looking at some online savings accounts as a quick and dirty way to make at least 1% and keep it safe, but I'm searching for some instrument that would at least race neck-and-neck with inflation while keeping the principle safe. Has anybody else had this first-world problem and would like to share what they did with the dough? Thanks in advance.

pb4uski 09-26-2014 08:35 AM

Online savings account is the best option I know of.

There are a number of higher interest options out there but the amount you can earn that higher rate on is limited and you need to jump through certain hoops in terms of transactions to get the teaser rate.

photoguy 09-26-2014 08:47 AM

Online savings account at ally (@ 0.9%), max out I bond limit, short term corp bond (vfsux), and then a small percent in equities.


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Totoro 09-26-2014 09:13 AM

First check if any long term money will come liquid in the next 6 months. If it does you can treat this 100k as long term money.

If not, high yielding savings account is your only option.

jetpack 09-26-2014 10:51 AM

Everbank has promotional 1.4% 6 month rate on up to 50k.. "My savings Direct" has a 1.05% rate.

Bestwifeever 09-26-2014 10:59 AM

If you are earmarking this for the purchase of a home, the inflation factor I would worry about is how the price of that home in six months might go up by the time you will buy it. If minimal, just stick it in a savings account imho. If the prices are going up, can you lock it in now?

Fermion 09-26-2014 06:25 PM

Sharebuilder gives you $300 for opening a $50,000 account and $600 for a $125,000 account. Just have to deposit the money within 90 days. I didn't see any rules about how long you have to keep the account open but it is usually 6 months or less.

$300/$50K in 6 months is a 1.2% annual return.

Oh, and Chase bank gives you $250 for opening a $15,000 checking account and setting up 1 direct deposit (which I think you can cancel quickly).

So that is $550/$65,000 = 1.6% annualized return. And you get a 0.05% yield on the saving/checking which would be another $7.50 :D

Tree-dweller 09-27-2014 06:12 AM

Thanks all, it's about what I expected but this forum is great for harvesting other experiences and ideas.

Amethyst 09-27-2014 08:18 AM

The Sharebuilder offer says you have to keep the money in the account at least 9 months, or lose the incentive. If there is any doubt you'll use your $100K within 9 months, it might be worth the risk.

Amethyst

Quote:

Originally Posted by Fermion (Post 1497664)
Sharebuilder gives you $300 for opening a $50,000 account and $600 for a $125,000 account. Just have to deposit the money within 90 days. I didn't see any rules about how long you have to keep the account open but it is usually 6 months or less.

$300/$50K in 6 months is a 1.2% annual return.

Oh, and Chase bank gives you $250 for opening a $15,000 checking account and setting up 1 direct deposit (which I think you can cancel quickly).

So that is $550/$65,000 = 1.6% annualized return. And you get a 0.05% yield on the saving/checking which would be another $7.50 :D



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