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25K Investment

wallyghs86 4 10 July 20, 2016 at 12:20 PM in Finance (5)

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Perhaps a dumb question, but crowd-sourcing smart answers is never a dumb thing to do.

$25,000 cash available.
Must remain relatively liquid for 12-18 months with a 5-10 business day withdraw period.
Must be zero or very limited risk as the entire amount may be called upon within that period. Limited or capped risk may be acceptable if I can sufficiently mitigate with other funds.

The best I've come up with are high-yield savings in the 1% range or playing the game with slightly lower return reward savings. Looks like the best I can do with that sort of 'game' is a base of around .85% and rewards of 1.6% ($100 on $25,000) moving the funds every 90 days into a new $100 reward account. That's assuming those continue to be available.

I haven't put everything on paper yet to truly determine feasibility, but I'm curious if anyone has any better ideas.



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Put it in the bank and move on. You could squeeze a few bucks with the rewards game, but you also risk a mess if you suddenly need the money right as you're transferring it from one bank to another. I can imagine a scenario where you've just transferred $25k from BankA to BankB as a new customer, you find yourself needing the cash in 5 days, and BankB drags their feet at releasing the funds because they're wary that you're running some kind of scam.

The other question I'd ask is -- how MUCH of that $25k do you actually need on demand? What's the risk if you don't have access to it? If you suddenly needed it in 5 business days, would you need the entire balance, or are you thinking in more general terms? Would you lose your house if you couldn't come up with the funds? You could maybe look at some intermediate term muni bond funds to squeeze a little tax-free return out of it, but you'd have to be willing to sell at a moment's notice with a potential loss on your hands.

If it was me, though, I'd just keep it in the bank.
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I'd probably try playing the bonus game, although it's not without risk. The smart thing to do would be to take the best available offer right now and park your $25K there until you either need it or are sure that you won't need it.
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Look for some small town banks or credit unions. Several offer 5.01% on up to 5k, you can usually open 2 of these checking accounts. No direct deposit required, usually 10 debit swipes easily attainable with amex serve 25 cent daily debit.

Buy a chase checking coupon on ebay

You can also open 5 checking accounts a year without making chex systems mad, so check out doctor of credit quite often.

1.75 and 2% checking accounts are everywhere these days, you should be getting at least 40 a month if you had 20k parked there.

CDs and high yield savings are a thing of the past. Checking accounts are the way to go, my friend.
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1% in an online savings account like barclays. Thats the world we live in now folks.
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