Question: How should I invest savings for house downpayment? My DH and I have 30,000  saved for a house downpayment, but won't be buying for at least a year. How should I invest it so that we can get to it when needed?

Answer: First answer's got the right idea. Since this *is* for a house, you want as little risk as possible. Unfortunately, that usually means low rates of return. However, in your case, I would strongly advise against putting the money into stocks and mutual funds: you'll probably need every penny you've saved, and all it would take would be one wrong decision to put you back at square one.\nCheck with your local bank; most places offer higher interest rates as balances go up.\nNow, my questions are, how firm is that year and can you avoid dipping into the savings while you wait? If the answer is "very", and "yes", go with a Certificate of Deposit. Most banks offer a significantly higher interest rate on a CD compared to a regular savings and even most Money Market accounts (I've seen anywhere from 20% to 300% better retruns on CD vs. MM). And (again depending on the bank's minimum deposit requirements), you may be able to split that up into different CDs; say, 15,000 in a 6-month and 15,000 in a 12-month. That way, in 6 months, you can reevaluate your situation, and either roll the 6-month over, or cash it out.\nAnother solution, though one to be wary of, is finding a reputable online bank. Online banks don't have the overhead costs of a traditional brick and mortar bank, and can offer higher rates of return. One reputable online bank offers a 4.25% APY for a basic savings account, compared to the 0.95 APY I can get at a local bank. The only downside to this is the turnaround time, a deposit to from your online account to the linked checking/MM/savings account usually takes a day or two.
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