Best super safe way to invest my money

amother

Sun, Jun 11 2023, 9:02 pm

Dh and I have been saving for a house. Right before covid we invested in what is considered super safe investment fund with chase and saw our life savings disappear. BH it went back up but we pulled out and said but we're not investing our house money in something like this again because we can't take a chance that a house comes on the market when our savings are at a low. That money ended up being grandfathered into some sort of money market kind of thing that's earning a really nice rate right now. I asked we can invest more money in it and I was told that we cannot just add money to that it has to be added in very large increments and we would not be eligible to put more money into that fund.

We have some more money in savings now that would be part of a larger down payment potentially.

What's the place that we can invest in that will let us pull it out whenever we want it with no major fees where we would get a very nice return? We understand that interest rates are high now so we should be able to take advantage of this but we don't know if we can invest our money for a month two months or a year because we don't know if anyone will find a house. Talking about 100k.

BrachaVHatzlocha

Sun, Jun 11 2023, 9:50 pm

CD rates are about 4% now but you have to check if they allow you to pull out before maturity

amother

Sun, Jun 11 2023, 9:51 pm

BrachaVHatzlocha wrote:

CD rates are about 4% now but you have to check if they allow you to pull out before maturity

The no penalty ones give like .05.

amother

Impatiens

Sun, Jun 11 2023, 9:55 pm

Amex (and others) have a high yield savings. Now at 4% I think.

amother

Peachpuff

Sun, Jun 11 2023, 9:56 pm

You can do a 5% cd and swallow the penalty if you really need the money. It’s usually 3 months interest so after month 3 you are ahead. You can also do a high yield saving account like capital one online . Those are paying well over 3%.

If you have a longer term horizon you can dollar cost average into an s&p 500 fund with maybe 40% in treasuries. You do run a risk of some volatility but you will beat a cd over the longer term hands down.

Amarante

Sun, Jun 11 2023, 9:57 pm

After the thread on googling, I am hesitant but just google high interest bank accounts and there are a lot of possibilities

Just make sure they are FDIC insured - presumably you are not over the limit for insurance

amother

Blush

Sun, Jun 11 2023, 10:10 pm

If you are planning on using the cash in the near future and best easy access, a money market savings account at any bank will give you a decent interest rate (I.e capital one is approx 4% now). If you don’t need the money in the near future, I would put it in the S&P 500.

amother

Tealblue

Sun, Jun 11 2023, 10:24 pm

6-month Treasury bills were paying 5.3% when I looked this morning. And there are tax advantages. You could also get 3- month bills if that's better for your house purchase timing.

amother

Tuberose

Sun, Jun 11 2023, 10:28 pm

amother OP wrote:

The no penalty ones give like .05.

We do a no penalty cd with CIT right now at 4.9%

amother

Pansy

Sun, Jun 11 2023, 10:29 pm

Just put it on a high yield savings account, no need to lock it up in a CD or bonds.

CIT bank is giving 4.85% for deposits over 5k. They are FDIC insured. https://www.cit.com/cit-bank/bank/savings

amother

Sun, Jun 11 2023, 10:31 pm

amother Pansy wrote:

Just put it on a high yield savings account, no need to lock it up in a CD or bonds.

CIT bank is giving 4.85% for deposits over 5k. They are FDIC insured. https://www.cit.com/cit-bank/bank/savings

That sounds perfect. Do you know if they have withdrawal fees?

amother

Pansy

Sun, Jun 11 2023, 10:37 pm

amother OP wrote:

That sounds perfect. Do you know if they have withdrawal fees?

There are no withdrawal fees.

It does take a few days to withdraw money - bank processing time is slow. I think that’s pretty typical.

amother

Sun, Jun 11 2023, 11:12 pm

amother Pansy wrote:

There are no withdrawal fees.

It does take a few days to withdraw money - bank processing time is slow. I think that’s pretty typical.

Just opened an account with them, thank you!

amother

Hotpink

Sun, Jun 11 2023, 11:38 pm

amother OP wrote:

Just opened an account with them, thank you!

#me too! Thanks to the above poster.

amother

Aconite

Mon, Jun 12 2023, 12:35 am

amother Hotpink wrote:

#me too! Thanks to the above poster.

Same