View Full Version : What to do with shortish-term cash?
If you had a noticeable amount of cash sitting around, that you expected to spend over the next two years for your living expenses, where would you stash it to earn *something*?
Interest rates on savings/money market seem to be approximately 0.02%, so a six-figure sum on deposit seems to earn about.....$0/month, rounding down to the nearest dollar...
Any clever ideas appreciated.
If you had a noticeable amount of cash sitting around, that you expected to spend over the next two years for your living expenses, where would you stash it to earn *something*?
Interest rates on savings/money market seem to be approximately 0.02%, so a six-figure sum on deposit seems to earn about.....$0/month, rounding down to the nearest dollar...
Any clever ideas appreciated.
Not very clever, but I would put it in Ally and make .6% in a money market checking account.
Not very clever, but I would put it in Ally and make .6% in a money market checking account.
That's about .6% better than the current situation, so thank you!!!
Of course!
Oh, shoot, edited to add I just went on to check and the accounts are down to .5%. Sorry I mis-represented the interest.
New one year cds are at .6 and then if I renew they add .05 to that.
My emergency fund is in a 6 month CD hoping for high interest rates. I might check out building a 2 year CD ladder with maturities coming due around the time you might use the money. I suppose an investment firm might build a similar investment grade corporate bond ladder for a little higher return. No idea how the numbers might turn out. I don't get creative with my emergency fund.
SteveinMN
3-10-21, 10:25pm
I think laddered CDs would be my choice. I-Bonds could be another choice, but they might be cumbersome to buy and redeem depending on when you need the money and there's a fairly low limit on how much you can invest in them.
I have a savings account with Ally. Though it has gone from 2% to .5, sure beats a regular bank's rate for stashing short-term funds.
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