7 Places to Stash Money You’ll Need in the Next 5 Years
Investing with long-term goals is excellent, especially if it’s to earn for retirement.
High-yield savings account
With interest rates so low, you won’t be making much if you don’t purposefully put money where it could deliver gains. A high-yield savings account could earn you a little more.
Certificates of deposit
Certificates of deposit, or CDs, are options sold by banks that allow you to deposit your money for a specific amount of time. Banks will offer a higher interest rate for CDs
Money market account
Money market accounts are also offered by banks and credit unions, and sometimes have a return rate slightly higher than a savings account. These accounts may include investments such as government securities and CDs
Unlike bank-issued options, Treasury bills are sold to investors through the United States Treasury Department. Think of these bills as loans to the U.S. government
Municipal bonds are issued by government entities at a state or local level to fund projects like road construction, new schools, or other community improvement projects.
Short-term bond funds
A bond fund is a mutual fund that invests only in bonds, such as those offered by government entities or corporations. There are no stocks in bond funds.
There are plenty of mutual funds out there, so you’ll have to do some research on the best mutual funds for your short-term investing portfolio. Short-term mutual funds have more conservative investments,
Even if you limit your investing to short-terms options, there are still plenty of different products for you to choose from.