My husband and I have just over $40,000 to invest for the next 3 months?

We are planning on buying a home in 3 months or so, but we don't want to let the money sit idle in a savings account with a low return. What do you advise. We also don't want to be tied down to a CD as the return rates are not great and their are steep penalties for removing prior to maturation.





Thanks All!My husband and I have just over $40,000 to invest for the next 3 months?
Consider the Vanguard Prime Money Market Fund with a current compound yield of ~5.05% APR.


https://flagship.vanguard.com/VGApp/hnw/鈥?/a>


If you are in a high tax bracket you may prefer their tax exempt money market funds:


https://flagship.vanguard.com/VGApp/hnw/鈥?/a>


Sometimes other institutions will have a higher teaser rate, but Vanguard tends to have the highest yields I've found over the long run. (Vanguard money markets are not FDIC insured, however.)





Article on teaser rates:


http://www.marketwatch.com/news/story/ba鈥?/a>





ING and HSBC often have rates close to Vanguard, and most of their products are FDIC insured. You can check these at the following links:


http://home.ingdirect.com/


http://www.us.hsbc.com/1/2/3/personal/sa鈥?/a>


http://www.bankrate.com/My husband and I have just over $40,000 to invest for the next 3 months?
petroleum is always a good investment!
If the feds lower the rates tommorrow the savings rates at the banks WILL BE HIT! CD's are not an option here because I don't know of any with a 3 month term. I want to say the market itself but something safe...well this can work and ETF IPE its a tips play and they do pay out a dividend every month. plus that pice has jumped up within the past two weeks. Anything else and its a higher risk like CWI or PWJ (a good growth play and all three I own) if you can afford to take a little risk but you would be better off playing it safe go with online bank.





and stay away from Forex....
Try a money-market fund. Typically the returns of such funds exceed fixed deposits and they do not have any lock-in period.
Use an online savings that pays about 5% and is liquid. Also brokers have what is called a sweep account that usually pays a little over 5%; that is about the highest return your going to get on liquid funds.
If you need the money quickly try a high yield online savings account. They have no restrictions on your money, and they link directly to your current checking account.





ING Direct 4.30% APY


Emigrant Direct 4.75% APY





Both offer much better rates than a typical hometown bank savings account. FDIC Insured as well.
It depends on where you are.





$40,000 is enough to get an ';okay'; financial analyst.





Personally, I would hold on to it as I see nothing going good in US economy.





Maybe investing in foreign money is a good choice but the US dollar has dropped too low for it to be feasible.
Im not sure on what your looking for, the best your going to get is somewhere between $1-2k no matter what you do. Granted $40k for a down payment is still a good chunk of change, depending on where you live and how much your wanting to pay for your house.
I would say that you should exchange it for EUR at a rate 1,43 and after New Year's where there is also a decline in the EUR/USD exch rate trade it back at say 1,4399 and earn some extra cash.





PS.Consult a FOREX expert beforehand.