General Question

saservp's avatar

Best place to stash cash for 3 years?

Asked by saservp (291points) August 13th, 2010

Hi, All. I am saving up to buy something. I currently have ±$10,000 and will continue to be contributing $1,500/mo towards my goal for the next three years.

I have been putting my money in with about 2% interest, but in my head I have been calculating interest as just a little bonous. However, I was wondering where else I should look to get maybe a better rate?

My money does not need to be at all liquid for three years so I figure that has to give me some leverage. CDs and all bank rates are terrible everywhere I look. I’ve looked at and which may be possibilities though.

Any advice?

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12 Answers

saservp's avatar

Again, banks are only offering up to 2% right now. The link you sent offers 0.6%

gypsywench's avatar

@saservp I guess that I got a better deal. Sorry

Cruiser's avatar

I would look into bond funds….I have no real recommendation but the bond funds in my 401 have weathered the financial storm the last 2 years with over a 3.8% return. I’d contact a broker or do research at or Motley to start your own reasearch.

BarnacleBill's avatar

A money market account at Wachovia can get you 3.75% with a $10,000 minimum balance. Since you have that base, that may be the way to go. Check money market account rates.

Rarebear's avatar

Rates are going to be horrible now wherever you look. Anything that offers you a high rate will have a high risk of losing the investment. I agree that if you want something reasonably safe, check out a bond fund. Make sure the fees are low, like Vanguard or a similar company. You don’t want, for instance, to be investing in something that has a 2% rate of return but a 1% fee. Vanguard has short term index bond funds that might work for you.

Aster's avatar

I don’t do this but check out the rates on .

CMaz's avatar

ING Direct

ETpro's avatar

With the financial uncertainty around for the next 3 years, consider putting it in gold or precious metals.

Rarebear's avatar

@ETpro I disagre. Gold is too volatile, and has reached a peak recently. Also, it’s hard to get real gold as opposed to just gold “on paper”, and the fees are high.

ETpro's avatar

@Rarebear You may well be right. I have not checked recently. I just know the gold dealer Glenn Beck is pitching is a total rip-off.

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