<p>We have just sold our house and will not close on our new house until June 22nd. My friend who is doing our new loan suggested getting a short-term CD because we’d get more interest than just leaving it in savings. The amount is all the proceeds from our sale, so pretty substantial, although not over 100k. </p>
<p>I welcome all ideas as I’d like to move it from savings ASAP to get the best return, while keeping it safe (ie no stocks, etc).</p>
<p>Doesn’t HSBC have a 4.7% savings account?</p>
<p>Gold (Ten characters)</p>
<p>CDs are great! They have different rates depending on how long you’re willing to tie up the money. Dpending on what your cash flow needs are, you could have , say, 50K in a three-month and 50K in a six-month, which would earn a bit more. Also, it doesn’t have to be your bank that you are getting the CD with. Call around to local savings and loans and they will likely have a better rate.</p>
<p>HSBC’s advertised on-line passbook account rates rates are better than most CD’s. Wire transfer in and out, get 4 1/2 % or so. But the online service isn’t very user-friendly.</p>
<p>ING Direct has Savings accounts and CD accounts with some great rates. I just got a 9 month CD at 5%. User friendly, but sometimes transfers take a week with their savings. (I’ve been using them almost 2 years)</p>
<p>I like money market mutual funds. They have been not that great for a few years with rates around 1 percent, but now that rates are rising - 7 day yield on Dreyfus Liquid Assets was 4.32% and Fidelity Cash Reserves was 4.64% just for example, 2 of the bigger and older funds. The CD will tie up your money for the term of the CD, whether it is 3 months, 6 months or one year. The mm funds typically allow check writing on your interest earning balance.</p>
<p>thanks!</p>
<p>As I said, we will need the money June 22nd so all the 3-month and longer CDs are out. </p>
<p>Maybe I’ll try that money market mutual fund. Will they allow you to only keep the money there for ~3weeks?</p>
<p>Since you are reaccessing the money so quickly, it may just make the most sense to keep it in a premium savings account. Transaction fees for mutual funds (buying and selling) will likely eat up the difference in money earned.</p>
<p>just leave it in a passbook account at your local bank. The interest rate differential for three weeks is not worth the gas (nor time) to drive down the road. For example:</p>
<ul>
<li>1% interest on $75k for 20 days is: $41.10</li>
<li>4% interest on $75k for 20 days is $123.29</li>
</ul>
<p>Dot Coms.</p>
<p>In all seriousness, CDs have great rates right now. They were at 2-3% just a few years ago, if I recall correctly.</p>
<p>INGdirect is very user friendly (in contrast to HSBC) and I generally get my money on an electronic transfer to my checking account within two business days with immediate availability. However, their interest rate (about 4.15 percent) is a bit less than HSBC (about .4 to .5 percent), yet I personally recommend INGdirect over HSBC because of its ease of use. Don’t leave your money lingering in a checking account that pays next to no interest. To find the highest CD rates in the country go to bankratemonitor.com and take a look.</p>
<p>I just browsed through bankratemonitor.com for the first time in many months. It is very useful and gives both the highest CD and savings account rates in the country and in your state. For instance, the highest 6 month CD rate in the country is 5.27 percent - not too shabby.</p>
<p>INGdirect is great!
A friend sent me a link to open an account…$25 bonus if opened with $250 or more! Easy to use website, currently 4.25%, even on small accounts.</p>
<p>My college age son was actually my motivation for finally bailing on our local bank with its 1.2% interest. He has some $$$ from his summer job that he wanted to earn something on, but no long term commitment. So, he opened an ING also, $500 opening balance with that ‘free’ $25. It’s a deal. Linked to his existing no interest checking.</p>
<p>Emigrantdirect has even a better current rate, 4.65% I think. Their opening procedure was more cumbersome and no bonus that I could find.</p>
<p>I think these online FDIC insured ‘banks’ are ideal for college kids since they may attend school far from home…money is available through their computer wherever they are.</p>