So yesterday I was expressed my desire to save half of my bonus this year so that next year I can have money for a down payment on a house. Let me first say that I already have the house picked out, it is just the date that needs to be finalized for the sale. It is my Grams old house that my Aunts Colleen & Della live in now. I told Aunt Colleen years ago that when she was ready to sell I wanted to buy it, to keep it in the family. So there you have the back ground.
The price of the house is negotiable, but I still want to have a decent down payment ready for it. I have been putting away $100 from every paycheck to my savings account for a while now, and then this larger chunk of money will be nice as well. But my question is: Since this is a larger chunk of money (we are talking a few thousand dollars that I am putting in a savings account) I wonder if it is better to put in a straight savings account with my credit union (Mountain America) or should I invest it in something like a CD or Money Market thing. I am great at accounting things, but not so good with investment decisions, so I would love to know what the audience at large suggests. I do know that the CDs or Money Markets yield a higher interest rate if the money is not touched, which is what I want, but then how do I chose the right one? So tell me what you would do so I can learn more to make a good choice, I hope!!
3 comments:
We have (had) our money in a money market account. It was through ING.com. It had a higher interest rate than our savings (what doesn't?) and we liked it because it was linked to our checking account. It made it very easy to transfer money back and forth since we wanted to be able to get to it. Since it took about 3 days for money to come from there back to the checking account though so we weren't tempted to just spend it often. We found it worked really well for us, but may not be quite what you're looking for. :^)
For just quick, money stashing I use Ing.com as well... Automatic saving plans, CDs, and you can buy stocks as well.
http://www.hsbcdirect.com/1/2/1/mkt/premium-rate?code=P460000044&WT.srch=1&WT.mc_id=HBUS_P460000044
Try that link for the one I'm using for an upcoming important event. :-)
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