Best thing to do with equity refinace money?

Question

The house we were going to make an offer on was taken off the market. My equity refinace has already gone through so I'm sitting on a chunk of money. It may be awhile, 4 months or more before another house may come on the market that we would want to purchase. What's the best thing to do with the money in the meantime? Stick it in a savings account? Put it in a short term investment such as a GIC? Any serious suggestions?

Answer 1

I would go to bankrate.com.  There are some great online savings accounts offering 3.5% and I would also check out the money market accounts.  Some banks have decent short term cd's, but the rates arn't that hot.  Depending on how much you have, your idea of how much you want to spend on a new home, you may want to take a look at the big picture as well.  if you have enough to put down to get you to 20% equity and some left over, why not bolster your 401k (do you think your 401k/ira will ever be worth more than your home?) or set up a 529b for your kids college education?

Answer 2

gold

Answer 3

Put the money in a money market fund. This is a no load mutual fund where the daily price does not change. What could change is the percentage of interest you will earn. It will give you the most bang for your buck while not locking it up for any length of time. You can even find ones that are insured by the Federal Govt.