Where to put sitting money (in liquid money market funds?)

[youngmoneh]

I have money at a local bank sitting there, not earning any interest. This is money that includes stuff for a house down payment (< 2 years), car (<5 years), and emergency money.

Where should I move it? Please point me in the right direction. I'm hearing about money market mutual funds (MMMF) where they invest in short term bonds so every dollar of your money is a dollar invested in a short term bond (or something like that). I'm looking for this kind of mutual fund where they also give a linked debit card to make regular purchases with.

I'm also hearing about Ally bank, but the rates are low. I'm also hearing about the uncertainty of US debt, affecting the safe haven of MMMFs. What advice can you give me relative to current trends?

[Slug]

All of my money for this kind of thing are tied up in the highest interest money market accounts I can find. For me that's ING Direct, ALLY, and my local credit union. I have no interest in taking any risk with that money.

[mcfroggin]

I like ING myself. I hear Ally is good as well.

[thesmartnickel]

What are the interest rates on these MMAs? I currently have my cash sitting in a 1.1% savings account.

[Ima saver]

ING is paying 1% You can get their electric orange account for 1.14% if you have $100,000 with them. The best I can find is a 5 year c.d. with Melrose credit union paying 2.9% interest.

[thesmartnickel]

Thanks for the quick response. If I had $100,000 I would probably invest a portion of it instead of have it just sitting in an account. Hopefully these rates go up within a few years.

[Ima saver]

I hope so too. I was getting 4 and 5% a few years ago.

[couchrobt]

Should you think to put your funds for this type of thing, best to have it tied up in the highest interest funds market accounts offered. It may not be effortless to decide on alone. Try to ask a financial expert then.

[97guns]

i moved all my cash in to physical silver and some gold last june and am up 50% on paper, er i mean on physical.

silver and gold is money and at minimum keeps up with inflation which should be going HYPER very soon.

[snafu]

The choice is basic, you can leave money in a savings type vehicle [bond, CD, interest] paying 1% or 1.5% attempting to protect your capital. It's important to understand that Bonds lose value if interest rates increase. 2nd, you are losing buying power to inflation. They keep telling me inflation is under 4% but it's more like 7% for the stuff I'm buying! [gas, food, utilities] Last month the electric company pres. said they wanted/needed to increase cost of KwH by 35% [ouch]

Personally, when the market dives, I start DCA [dollar cost averaging] into a low [MER] cost Dividend mutual fund [MF]. Just decide on a specific amount [there is a minimum] and have the sum taken out of my account each month. I figure these are the top, companies and while the NAV [value]changes from day-to-day, by the end of the time frame [ 3yrs, 5 yrs] I've increased the total sum [re-invested dividends]. I know I can sell any MF and have the money in my linked chequing a/c in two business days. To avoid scaring myself, I only look at the value on the day following my purchase [today's value is listed tomorrow]and on my statement.

I only buy Dividend funds when the market is on a downward spiral and have been doing this since my 1st job. Yes, it goes down, mostly it goes up. Look on-line at Fidelity or Vanguard funds for example. If you were truly wealthy, would you invest in the top ten listed stock to increase your wealth?

Only you can choose how to care for your money. You need to be able to sleep at night