Best Place to Park Cash While Saving for First Investment?

[Jeux Marseille Fajardo]

Hi everyone, I'm starting out and just wondering what people are using to hold their savings as they gather funds for their first investment. Where can you get the best safe return?

[Tyler Warlow]

This may be the boring answer, but I just use a high yield savings account. The money is set to grow around 4% and your money is not subject to the volatility of the market. Sure, the interest rate may vary depending on the market, but the money itself will not be impacted, and it is always available based on your timeline.

Generally, if you have a short timeline, it's usually not advised to put money in investment accounts that are subject to the market because it's an easy way to lose the money you need for your investment if the market does any sort of correction. Then you have to wait to either save more or for the market to come back up, which obviously could impact your timeline.