What to do with 18 Mo/2 Year Money?

[SunnyOne]

I have a large stash of cash earning nothing in a savings account. I will need this money in approx 18 - 24 months as a large down payment on a home.

Are there better options than a savings account? It seems MM are not paying much better...

 

[chassis]

Direct online account, for example HSBC or First National Bank of Omaha

Bond index fund

Dividend stock

 

[travelover]

I had the same problem. I put it in the highest paying 1 year CD that I could find. As it turned out, stocks went on a tear, but fell just before I bought so I was glad it was securely invested. It is all luck of the draw. Feeling lucky?

 

[Sunset]

If you really need the money in 2 yrs, then you cannot risk it falling in value 10%->50%
This means just an interest bearing online CD.

 

[mrfeh]

CD or money market/savings. I think online savings accounts are paying more than 2 year CDs at the moment, but you'd need to check...

 

[bobandsherry]

Feeling risky? Maybe look at investing in T. Paying 7% dividend, but risk of stock price degrading. But price is at or near a 5 year low and still hasn't recovered to pre-covid price so could even see some upside on price. So if you willing to take some risk you can pocket a bigger return. It's always risk vs. return.

 

[jazz4cash]

I looked all over today for CD “Specials” and didn’t find much but there are 18 mo offers out there for 0.7% and Ally has 11mo no penalty at 0.5%.