What, other than a regular savings account, would be the best place to put a sizable amount of money into for a year or two? The money is intended to be used to buy a house, but for the next two years that’s not really in the plans. However, I don’t really think leaving the money in a savings account is very financially smart? Any thoughts?

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Posted by Emma He (MONEY FORUMS: 4, Answers: 5)
Asked on February 15, 2016 10:17 pm
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I second Hannah. I keep all money that I am saving but need to use in 5 years or less in a high yield savings account. Mine just dropped their interest rate to 0.75% but it’s better than the 0.1 percent you’d get in a traditional savings account.

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Posted by Catherine Alford (MONEY FORUMS: 0, Answers: 23)
Answered: February 18, 2016 6:43 pm
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Hi Emma,
I would tend to shy away from investing money that you need in less than 3-4 years. A high yield savings account might pay you around 1.2% these days, so at least shop arround for an account. If you feel that you absolutely must invest, consider a very low risk bond fund (such as a municipal bond intermediate fund). Even with bonds demonstrating lower risk, I would tend to keep my money in cash.

Savings accounts aren’t sexy until you need money, then you’ll be thankful to have it.

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Posted by Hannah Rounds (MONEY FORUMS: 1, Answers: 54)
Answered: February 16, 2016 8:12 am