Where to park cash until needed?

Question

I'm looking for a strategy where I can keep seasoned funds until I need them for a purchase.  It should be liquid enough that i can access in relatively short time.

TIA

Frank Geiger · Answer

That's an incredible rate for a CD. I would do the same thing.

Max Soukhov · Answer

Short term ETFs that holder treasuries are really good as well. SHV for example. The biggest upside is that it's helpful if you have a large amount of cash because most of the high yield CDs limit you to $10k or $25k etc if you are parking cash for a real estate deal and you have $100k there's no bank or credit union I know that's going to pay you more than 2%. For small amounts, you can also check out Brinks they pay 5% on a savings account if you use their card.

I've also seen a few other companies like Beem that says they pay up to 7% but I'm not really clear on how that works. Lastly, there's some high yield CDs from non-US banks or non-bank financial companies which might be worth considering

Jaron Walling · Answer

My local credit union offered a 6-month CD @ 5% so I put my funds in there. Shop around to smaller banks and see if they offer any specials. I'm hoping they offer it again. I'll just roll the money into it again.

Bjorn Ahlblad · Answer

Maybe too good............

Jay Hinrichs · Answer

wow that's a great deal..

Manuel Savorelli · Answer

@Ley Nezifort, thanks for that.  I too use a high yield online savings with Barclays but was looking for alternatives due of limitations on interest as well as ability to receive Cashier's Checks, etc., as no brick and mortar presence.

Separately, does anyone know if transferring seasoned funds from bank to bank requires re-seasoning for an additional 60 days?

Thanks

Ley Nezifort · Answer

@Manuel Savorelli I personally save my seasoned funds in a High Yield Savings account, especially if it’s money I’m looking to use for down payment within the next couple of months. I use Marcus By Goldman Sachs, their interest rate was as high as 2.25% but went down to 2% due to the recent rates cut from the feds. There are some other solid options out there too.

Darren Mesibov · Answer

I'm curious about the same thing as well. When I started saving I didn't have enough to be bothered by the 1.8% return on my money market account, but now that I've accumulated a bit I'm starting to lament loosing to inflation while I continue to save.

Where to park cash until needed?

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