Q&A: Parking money for a short term

Dear Liz: We will soon be selling our home and moving into an apartment until we purchase a new home. Our proceeds from the sale will be over $600,000. It seems that there is no place to safely put the funds and get some meaningful interest to boot. Savings accounts and money markets pay very little interest, and certificates of deposit have a fixed time. We may need to withdraw the money in as few as 30 days, but it may be six months or longer. Any suggestions where to park our money?

Answer: Some online banks currently offer interest rates around 1% for savings accounts. It’s not much, but it’s better than the 0.06% rate that’s currently the national average, according to the FDIC’s April 3 report. An Internet search for “best savings rates” should turn up competitive offers.

A rate of 1% isn’t much and means that you’ll lose a little ground to inflation, which is currently more than 2%. But it’s more important that your money be safe and liquid, ready when you need it, than for you to try to squeeze a high return from it.

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