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NBFR: savings vs CD

KTdiditKTdidit member
in Blended Families

DH and I have a decent sum of money sitting in our checking account, being reserved for a down payment on a new house some time next year. Probably around alte summer/fall. I have been trying to decide what to do with it and I've come up with these three options:

1. Money Market account at our bank. Rate is 0.02%. Not nearly as high as I wanted but easy access if there is an emergency.

2. CD at our bank. 10 months, 0.30%. Better interest rate, but can't access it if we have an emergency. Also, we planned on adding to it with our tax return.

3. Savings account at a credit union. Rate is 0.20%. Not as good as the CD, but great for a savings account. Also depends on if we can qualify for membership at any in the area.

What would BF do?

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Re: NBFR: savings vs CD

  • suburbanstepmomsuburbanstepmom member

    Based on what you're looking for (and also concerned about) it sounds like a savings acct is the better route for you to take. Plus, then if you want to stash some, or all, or your tax returns into the savings account for a while during your house hunt you can accrue some more interest on that balance versus being limited to the original balance with a CD.

     

    Unfortunately CD rates are higher so you get a better return but they come with a lot of downsides. GL! :D

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  • logansmom3212logansmom3212 member
    Money market savings at ally is currently paying 0.84.
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