Recently came into the money and it's just sitting there collecting whatever the standard interest rate is. Is there a better spot for it that is very low risk and won't take much work? I'm 95% sure I won't need it for a year and am not really interested in taking much risk with it since i am also 95% sure that i will spend it between the summer of '25 and the summer of '26. I don't really want to open a new account or anything for a slightly better return, but if it's worth the extra work and extra headache of another account I suppose I would. Thanks!
I have 50k in my NFCU savings account that I won't need for a year.
byu/m_law1999 inMilitaryFinance
Posted by m_law1999
5 Comments
Wealthfront has a 5% apy HYSA get yourself a free $2,500 in a year. Or any other highjack interest rate account they’re not hard to find and will give your free money.
If you just want to sit and forget about it for a year, you can put it in a HYSA (High-Yield Savings Account). There are many around that offer 4.5%+ interest rates, compared to the probably 0.25% you have currently. That would yield about $2,000 more without doing a thing
VMFXX, or use Vanguard to shop for a CD nationwide.
At that level, buying Treasury bills might actually be attractive(their sites not very user friendly). You don’t pay federal income taxes on the interest, so you will likely beat a CD or HYSA in the total return.
If you really don’t want to open another account, NFCU has Money Market accounts that will offer you 1.5% APY. Much much better options elsewhere though. If you’re positive you won’t need it until a relatively fixed date, you can also utilize their Certificates at 4.8% APY. This will also ensure you don’t get drunk and decide to buy a new Camaro, or slowly whittle it down with “small purchases here and there”.