Got about $30k to invest

[TangoJuliet]

My wife and I are saving up to buy a bigger house late next year. We are estimating that it will take about $110,000 for a 20% down payment including closing fees, etc. We are not counting on the stimulus credit that is going on now because its not guaranteed to still be in effect (but a lot of people I have spoken with have said it will still be going on).

Right now we have $55,000 in our high yield savings account, another $5,000 in CDs and $2,000 in checking. The high yield is only giving us 0.9% return and the CD is at 0.5%.

I'd like to break up the high yield account and invest about $30k in something better then the .9 we are getting and keep $25k in it. So far nothing I have found online has shown anything much better then what I am getting right now.

I don't want to invest in the stock market or anything high risk as this money is being used to buy a house next year.

Thoughts/Opinions?

 

[Crono]

I was going to say Forex, but that's not low risk.

Hard to think of anything that's higher interest and safe at the moment.

 

[GT1999]

Definitely put the CDs into the high yield for now. I hate CDs.

Talk to a financial planner?

 

[totalnoob]

1.55% 1 year CD from the 2nd place here. Not great, but still a huge improvement.

http://www.bankrate.com/funnel/cd-investments/cd-investment-results.aspx?prods=15

 

[Sureshot324]

Not much higher, but ING Direct savings accounts are at 1.2% right now.

 

[dank69]

Definitely put the CDs into the high yield for now. I hate CDs.

Talk to a financial planner?

My financial planner had nothing better than 1% last week.

 

[Miramonti]

I was going to say Forex, but that's not low risk.

Hard to think of anything that's higher interest and safe at the moment.

Nor is there even an edge to gain a penny for the average person trading forex.

 

[TangoJuliet]

1.55% 1 year CD from the 2nd place here. Not great, but still a huge improvement.

http://www.bankrate.com/funnel/cd-investments/cd-investment-results.aspx?prods=15

There was something at 1.65% (State Bank of India). Are these places safe to invest with? I really didn't see any well known places on that list.

Not much higher, but ING Direct savings accounts are at 1.2% right now.

Yeah, thats the thing I'm thinking about right now. Is it really worth it to go and move everything to a different bank for .3%? I mean, whats that going to come out to over a year....$90? Doesn't really seem worth all the trouble.

 

[Jassi]

There was something at 1.65% (State Bank of India). Are these places safe to invest with? I really didn't see any well known places on that list.



Yeah, thats the thing I'm thinking about right now. Is it really worth it to go and move everything to a different bank for .3%? I mean, whats that going to come out to over a year....$90? Doesn't really seem worth all the trouble.

SBI might be Rupee denominated (but FDIC insured) - return depends on Rupee/ Dollar fluctuations.

What about a low risk bond fund? Some pay monthly distributions (should be re-invested) and have a better yield than CDs.

I've got CPTNX in my 401k but there are others. You do have small risk to the principal though.

 

[mshan]

One year time horizon: money market fund.

If interest rates go up, the value of bonds tends to go down. And you shouldn't be in stocks unless you have at least a 5 year time horizon.

You could normally get slightly higher yield by putting money in a cd, but if interest rates may start to rise by mid-year, you may just be locking in a low yield.

And if the yield on a particular money market fund is way above what every other competitor can offer, caveat emptor! (hint: they may be investing in risking assets they are not supposed to be investing in): http://www.washingtonpost.com/wp-dyn/content/article/2007/11/17/AR2007111700209.html

Doubling your money in a year: go to Vegas and bet on red (but be prepared to have nothing left too, possibly).

Realistically, you have to carefully look through your budget and find places that you don't need to spend that money, earning more money, or putting off house purchase till your finances are in better order.

 

[fatpat268]

Not much higher, but ING Direct savings accounts are at 1.2% right now.

It's 1.095% for me.

 

[CRXican]

I need to do something like this as well. Sadly that 1.55% CD might be it

 

[Regs]

Have you looked into T-notes and T-bills? TreasuryDirect.com.

 

[LucJoe]

I get guaranteed 4% in my reward checking account. Imo there is no better vehicle for short term investments with no risk.

 

[Fritzo]

Consider getting on the cloud computing wave. Companies like Akamai, Rack, Western Digital, Cisco, and others should see some nice growth in the next 5 years. Microsoft is moving 70% of their products to cloud infrastructure, and they're going to need storage and equipment to do that.

 

[mugs]

Invest it all in Ford in March 2009.

 

[DaveSimmons]

ING Direct or a FDIC-insured CD are the safest of what's been mentioned. With ING you aren't tied to a maturity date with another 1-year renewal. You can keep the money in for 11 months or 14 months without penalties.

Last time I checked money market funds were earning less than CDs.

 

[Koing]

Consider getting on the cloud computing wave. Companies like Akamai, Rack, Western Digital, Cisco, and others should see some nice growth in the next 5 years. Microsoft is moving 70% of their products to cloud infrastructure, and they're going to need storage and equipment to do that.

The dudes got a year and wants low risk...

Koing

 

[AyashiKaibutsu]

Put it all on 00 if you win retire.

 

[nick1985]

The guys on TV tell you to buy gold. I'd listen

 

[kranky]

Look at the Alliant Credit Union. 2% on savings, no limit.

 

[totalnoob]

The guys on TV tell you to buy gold. I'd listen

Silver is a far better value. Everyone should grab a few rolls of silver eagles on Ebay for insurance.

 

[ichy]

Definitely don't put any money that you'll need within a year in the stock market.

If I were you I'd look for a rewards checking account. I found one locally that pays 4% on the first $25k. There are a few annoying conditions (have to make 12 debit card transactions per month) but they aren't that big a deal.

 

[Imp]

A year really isn't much time to work with, and with $55k, you're probably going to get a thousand or two max with low risk investments. Interest rates are crap right now, and you'll have to look at 5 year GICs if you can't handle any risk, but you need the money soon, so that won't work.

Find a slightly higher yield savings account.

 

[Elbryn]

check this out
https://www.kasasa.com/explore

essentially what ppatin is talking about.

there might be a participating bank near you. open two accounts, one for wife and one for you. 25k limit. near my i can get 4.01% in a cash account. you do have to jump through some hoops with using a debit card x number of times a month and direct deposit i think but it's essentially a checking account.