Best way to save short term?

Question

I'd like to save up for a home in the next 2-3 years. I'm currently 23. What sort of account can I open that I can easily take money out of but still get good returns? Some kind of e*trade or something?

Answer 1

e*trade has a high interest earning account as well as ING Direct. Either will work well for you.  

Answer 2

Just put the money in a money market account at your local bank. There aren't many places that you can get a good return these days with the low rates. The best thing you can do is sit down with a tight budget and don't spend any money for anything but necessities.

1) No eating out

2) Eat at home and buy food on sale

3) Don't buy new clothes

4) Bring your lunch to work each day. (not only will you save lots of money, you will lose some weight!)

5) No movies or other entertainment

6) Play free Yahoo games for entertainment or play board games with your friends.

7) If your friends make fun of you, just smile. They won't be making fun of you when you purchase a home and they are living in a tiny apartment. Good luck and go for it.

Answer 3

The best way to save is to Stop Spending.  Put everything away for two years and you will see.  Live like noone else so later you can live like No one else.

I did it and today I just found out that the bank accepted my offer on a house.  I did it for 2 1/2 years.  Your savings are not going to be maximized by the bank you choose it will be by the amount of money you are able to save and not spend on unnecessary things.  

Answer 4

Money market fund.