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Discussion Starter #1
I know asking for investment advice is a pretty open ended deal, but we've had a pretty good year so far and would like to make some of the money in savings earn a little more than the paltry 2% return that the banks are offering.

I had a very bad experience with Fidelity a few years ago and will never allow them to make a penny off of me again but do any of you guys out there have any suggestions? We would like to stay fairly liquid since a home purchase looms in the near future (yes, we're moving again).
 

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If it is for a short term it is not investing be happy with the sure thing 2% with almost zero risk. Short term speculation for a small gain should be avoided.

Conservative SheepOfBlue
 

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Discussion Starter #4
Looking for more long term - no get-rich-quick expectations, either. Middle of the road risk-wise... I just hate to tie up funds in CD's etc. where there is a penalty for accessing your own cash.
 

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Discussion Starter #8
Checked some of the local Credit Union rates and they are comparable to the franchise banks. No real deals to be found.

I hate to walk into one of those Investment storefronts (TD Waterhouse, Fidelity, etc.) so maybe I'll look into something like e-trade. I just never educated myself on investing :idunno:
 

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abtech said:
There are several Credit Union and Savings banks offering 3.8% on standard savings accounts (no penalty to withdraw).
I have seen money market accounts that pay up to 5%. They usually require you to keep $5000 in the account as long as you have the account. They will even let you write like 5 checks a month as long as you keep the minimum.
 

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Discussion Starter #12
EDDIE110171 said:
I have seen money market accounts that pay up to 5%. They usually require you to keep $5000 in the account as long as you have the account. They will even let you write like 5 checks a month as long as you keep the minimum.
Do tell...

I looked into the money market accounts at Bank of America this past weekend and they have two rates - the standard which is about half a percent higher than the savings rate, and their premium rates which are in the 2 - 3% range, depending on the balance. To get the premium rates, however, you have to switch to an "advantage" account that has a few restrictions that I don't particularly care for.
 

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BizJetGuy said:
Do tell...

I looked into the money market accounts at Bank of America this past weekend...the premium rates, however, you have to switch to an "advantage" account that has a few restrictions that I don't particularly care for.
Try a few different banks and if you have access like abtech said, the credit unions usually have the best deals.
 

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How about CD's?

30 secs on google looks like they're getting around 4%. They do either lock your money out, or charge the interest as a penalty if you withdraw early...but you seem to know when your house purchase will be so you can plan accordingly.
 

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Discussion Starter #16
luvtolean said:
you seem to know when your house purchase will be so you can plan accordingly.
Not so much... we are relocating back to Dallas and have had the house for sale here in Houston for the past 4 months. Luckily, we are on our own schedule meaning we move when the Houston house sells. It's with the same company, just a change of territory so we aren't on any strict timeline to relocate.

Two things I have to consider:

1. I refuse to buy a house in Dallas before this house sells - I'm not going to get in a two-mortgage situation so we are playing a waiting game in that respect.

2. When the Houston house sells (if ever, at this rate) we will have 30-45 days to find, purchase, close and move into a house in Dallas, so we need to stay somewhat liquid.

Now that I am taking a hard look at the situation, I'll probably wait to invest until the move is over. I've just never educated myself on that aspect of personal finance.
 

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Ah, OK, nevermind.

I'd look into all of this as it's good to know, but to stay that liquid, I'd leave it in a savings for now.

Think of how much money it is, and how much 2-3% more interest would really get you after taxes.

Also, I don't know if you're paying cash for the house, but if not, IME with mortgage lenders recently, they're very interested in seasoned funds and long standing established bank accounts.
 
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