Where to put money for 5 months? (bonds, mutual funds, rollover, FDIC)

[sbanawan]

We're selling our house on Friday (closing, that is) and we've got 5 months before we'll need to close on our new house. So, what do we do with our equity over the next 5 months? Obviously, it needs to be in a guaranteed return place, so no stocks or mutual funds. I guess I'm looking for the best interest rate around on a money market account or some such. What do you think?

[kelly237]

Originally Posted by sbanawan

We're selling our house on Friday (closing, that is) and we've got 5 months before we'll need to close on our new house. So, what do we do with our equity over the next 5 months? Obviously, it needs to be in a guaranteed return place, so no stocks or mutual funds. I guess I'm looking for the best interest rate around on a money market account or some such. What do you think?

I would just call Vanguard and Schwab and ask about rates for
bonds and money markets. Check and see if there are any CD's
for 5 months or do a 3 monthCD and then use a Money Market

[sbanawan]

Originally Posted by kelly237

I would just call Vanguard and Schwab and ask about rates for
bonds and money markets. Check and see if there are any CD's
for 5 months or do a 3 monthCD and then use a Money Market

Their rates don't seem to match up well against many other banks and I've read that 3 month CDs don't yield much more than a more liquid account. We're not planning on dipping into that money under any normal circumstances but I'd prefer not to have it tied up like that.

[elikhom]

I have 30k here...
www.everbank.com
and another bunch of money here... www.corusbank.com, but everbank has higher rates and obviously, you should split the money half to your name half to your husbands name if it's above 100K so you never have more than 100k in a single account.

[kelly237]

Originally Posted by sbanawan

Their rates don't seem to match up well against many other banks and I've read that 3 month CDs don't yield much more than a more liquid account. We're not planning on dipping into that money under any normal circumstances but I'd prefer not to have it tied up like that.

Yeah.. I agree with you about the CD.
BankRate.com compares money markets.


Also....be sure you don't have higher interest debts .

ps. check with an accountant about any tax implications.

[Roma]

We will be doing the same thing once our home sells.

Type of savings/money market in a bank that offers a high interest that is FDIC insured. Make sure everything is under the FDIC guidelines.

I'm going to assume you are married and I have no idea how much money you will have to put into your accounts. I will just use $600,000 to give you an example::::

$200,000 = joint account (H&W) husband and wife
$100,000 = single account (H)
$100,000 = single account (W)
$100,000 = single P.O.D. account (H with W as beneficiary)
$100,000 = single P.O.D. account (W with H as beneficiary)
_________________
$600,000 = total

[StealthRabbit]

might look at VFIIX (GNMA) vanguard

currently 5.3%, it has a slight NAV variation,(3%) but is currently at midpoint

[soulful]

The bank deals blog is the best I know for really finding the highest rates. Far outshines bankrate in terms of true deals.
You may want to check it out and note that every Saturday he puts a recap of deals by category for entire week. Scroll down to August 23 to see last Saturdays recap.
Bank Deals - Best Rates and Deals

[davidt1]

If you must settle for those CD/money market things, some local banks and credit unions will match or beat the best rates found online. Just for fun, I tested this idea with my credit union and they agreed to beat the best rate I found.

[Oildog]

Originally Posted by sbanawan

We're selling our house on Friday (closing, that is) and we've got 5 months before we'll need to close on our new house. So, what do we do with our equity over the next 5 months? Obviously, it needs to be in a guaranteed return place, so no stocks or mutual funds. I guess I'm looking for the best interest rate around on a money market account or some such. What do you think?

3 month CDs that you can rollover