Savings options?

This would likely depend on your age. If you're over 50 or so, I'd recommend the I-bonds or other safer forms for investment purposes. Otherwise, if you're comfortable, maybe try your luck in the stock market or maybe more aggressive mutual funds.

Quote from greensam88 : This would likely depend on your age. If you're over 50 or so, I'd recommend the I-bonds or other safer forms for investment purposes. Otherwise, if you're comfortable, maybe try your luck in the stock market or maybe more aggressive mutual funds.

Actually 26 but prefer a lower risk option which is why I thought I-bonds or bond funds.

What will you use this money for in the future?

Quote from Brian1 : What will you use this money for in the future?

Not sure. At some point probably a down payment but not any time soon.

Now it's just a savings account - but not for any one specific purpose.

Right now, there's just not a super-safe place that's paying high returns - that's just the way it is right now. That's not to say you can't find somewhere to put your money that will earn you more than 0.5%. Just search the forum for high-yield savings accounts or CDs.

I would simply leave your savings in savings-type vehicles (savings accounts, money market accounts, CDs, etc.) and use retirement accounts for retirement.

Many of us think bonds are a safe place for money, but right now, with inflation staring us in the eyes, bonds will not be a good place for our money. When inflation hits and interest rates paid on bonds rises, the bonds you own will have to be discounted in order to get anyone to buy them.

Again, I would simply treat your savings as savings (and accept you won't make huge returns on that because of the low risk level) and treat your retirement account as a long-term venture (with much more exposure higher risk things).

So, if it were me, I'd look for a savings-type vehicle that pays a higher interest rate than what you have now and put the rainy day fund as well as the money for the down payment on your house in there. If you're interested in saving for your retirement, I'd open a Roth IRA with Vanguard and leave that money alone until you retire.

www.betterment.com

Quote from Chauzer : www.betterment.com

If you do use Betterment, go through Mint.com to get it fro 6 months free (avoiding the 0.9% fee)

I haven't used Betterment but that would be the best way to try it out. (no fees)