$100,000, where would you invest?

[JPWRana]

[quote=Haku]Um yes, there is./QUOTE]

Soooooo, what is it then.

[Haku]

Well, at the very least, GMAC bank gives you 4.75% APY right now.

Their CD is at 5.30% at the time of this writing.

If you're willing to invest long term, any decent mutual funds out there will do.

And definitely don't forget retirement accounts! Less taxes in the long run equates to huge savings.

Me, I'm really boring and on the bearish side, so I'd also like to just pay off debts. These interest rates are generally higher than investments, and unlike investments, the effect in savings are immediate and can be profound in the long run.

If there's not much debt to kill, I'd probably just pay off a mortgage and never have to think about mortgage payments or the interest rates to begin with.

In general though, you really don't want to just stick money in the bank. The only situation a bank account should be used for (and I admit I'm no expert) is to stash your emergency fund. That should amount to roughly 6 six months of expenses, but that's it.