Where should we save our money for our property taxes?

Question

We would like to save $80 per week to pay our property taxes. We will need to make two withdrawals each year one in January of about $1500 and one in September of about $2300. GOTTA LOVE NEW YORK STATE!! Where should we save our money in order to earn the most interest? Or any other suggestions that would be in our best interest would be greatly appreciated. Thank you!!

Answer 1

Generally, property taxes are included in your mortgage payment.  I have no idea why your lender didn't offer this as an option.

If you are going to save money for your two installments, which is a common practice for paying property tax, I would find a bank with the highest interest rate possible.  You can usually find these through popular internet banks.

Answer 2

I use an Ing direct account because it is linked to another account I have at a bricks & mortar bank, the transfers to and from it are simple and don't take a lot of time so I can earn maximum interest until the taxes are due and they pay the highest amount of interest.

Answer 3

If you've got a mortgage the normal procedure is for the lender to include the taxes in your mortgage payment and hold significant funds in an escrow account to pay the taxes.  Low interest, but hassle free if it's a reliable bank.  If you're doing it on your own, 6 mo cds are paying about 4% and sort of cover the term of your payment intervals so probably the safest way to go.  The difference in intervals is probably because your municipality assesses school taxes at a different time than city/town/village tax.

Answer 4

ingdirect or hsbc. That where I would save it.