House Downpayment investment advice needed

[tropolis]

I realized I put this in the wrong forum, so I am reposting in this area.

I have an extra 500 a month I can set aside towards putting a down payment on a house. My problem is, I see that money and I want to spend it. I want to get it away from my primary bank account into an account where I won't see it. I'll have the money sent bi-weekly to that account so I don't ever see it.

My question is what kind of account would you recommend. This is short terms savings, I'm getting out in 4 years. With the tax returns and the savings, that'll get me 30k.

Is a add on CD the best bet? A high yields savings? Any ideas? Thanks.

[Mr Nice Guy]

I have heard capitol one has online savings accts at 1.5%. Not sure if CD's are much better. Do you have an emergency fund, funded?

[tropolis]

Nope. Will worry about that later. I have great job security. My main goal is finding the best place to put that 500 a month to let it grow.

Smarty pig has a 1.75 rate, what do you think of that?

[disneysteve]

I'd go with a high-yield account. That gives you the most flexibility. It also lets you benefit if rates go up and doesn't lock you in for any set period of time so that you can get to the money whenever you need it.

[tropolis]

I like that idea, but any high yield you'd recommend?

[disneysteve]

I like that idea, but any high yield you'd recommend?

Not specifically. I'd go with the highest rate you can find as long as it is FDIC-insured. SmartyPig is fine if they've got a good rate. And don't drive yourself crazy. A difference of a few tenths of a percent really doesn't amount to much. Plus, rates are constantly changing. If Company A has a better rate this week, next week it might be Company B and next month it might be Company C. Pick one and stick with it unless the rate plummets to where it isn't even close to competitive.

[bjl584]

ING,HSBC, and IGOBanking are all servises that I have used. That may be a place for you to start.

[feh]

redneckbank.com has one of the best savings rates at the moment, if I'm not mistaken.

[bjl584]

redneckbank.com has one of the best savings rates at the moment, if I'm not mistaken.

I just looked at their website. I thought that it was a joke at first, but it's for real. Interesting name for a bank.

[feh]

I just looked at their website. I thought that it was a joke at first, but it's for real. Interesting name for a bank.

I've been using them for about a year now and have no complaints.

bankofthewichitas.com is the same entity, if you'd prefer a more respectable name.

[disneysteve]

I've been using them for about a year now and have no complaints.

bankofthewichitas.com is the same entity, if you'd prefer a more respectable name.

Quite a few "online" banks are actually just online sites for brick and mortar banks. They do business under a different name online even though they are really just a division of the parent company.

[gremble]

Not specifically. I'd go with the highest rate you can find as long as it is FDIC-insured. SmartyPig is fine if they've got a good rate. And don't drive yourself crazy. A difference of a few tenths of a percent really doesn't amount to much. Plus, rates are constantly changing. If Company A has a better rate this week, next week it might be Company B and next month it might be Company C. Pick one and stick with it unless the rate plummets to where it isn't even close to competitive.

Steve said it best. Don't stress too much over a few tenths. Things are always fluctuating, so find something that suits your needs right now. SmartyPig sounds like a pretty good option as long as it stays competitive. And an additional bit of advice . . .work on your emergency fund as soon as possible. I know you said you have great "job security", but so did I working as an engineer before I was let go. I was unemployed for nearly a year, let me tell you, 4-6 months worth of expenses saved back was a God send. Just food for thought.