Where to put 50k?

[Accountant101]

Hi everyone recently discovered this site and really enjoy what it offers!

I have 50K I don't need for about 4-5 years. Its currently in a savings account earning basically nothing. Can someone recommend a savings account with a high yield or CD? I bank with USAA and their rates are really low but I trust them.

[Petunia 100]

Try searching here: http://www.bankrate.com/cd.aspx for the best rate you can find.

[Retired To Win]

If I were going to buy CDs, I would buy one-year ones. I would not commit to a 5-year stretch. That being said, I would probably look to invest the money more aggressively. That, of course, is on the understanding that my emergency accoounts are fully funded and I REALLY would not need the $50K.

Good luck!

[OracleofMN]

With greater return comes greater risk. You said that you need the money in five years - is this exact? What if the value decreased by the end of the five years would you be ok with that?

If you are looking for maximum yield with very little risk your best bet is probably a high yield FDIC insured account. You should be able to get 0.75% or more. If you are able to take risk and can extend your timeline a bit you might consider diversified mutual funds or etfs but only if you don't "need" the money. Don't try to get too creative chasing yield - there is risk.

[snafu]

If you have noticed that some of your costs are increasing like gas, electric rates, food and quality made clothes for example, you will soon realize that leaving money in a CD or savings account causes your $ 50,000. to lose buying power. Your $ 50 K will buy you less so in a sense you are choosing to lose money.

All the American banks are federally insured so I can't imagine why you limit yourself to USAA. While 'savers' are horrified that their sums generate such paltry interest, borrowers are delighted with 2% - 3. 5% mortgages and 0% car loans.

[zman11]

Where to put $50k

Do you currently have a business of your own which you are advertising online or someone else's (friends/family)?

If so, you could use some or all of this money to make money by being paid to advertise yours or your friends/family business and make a nice little profit at the same time.

You effectively make your advertising spend back and get a little profit as well.

I have recently done this and I am making a nice little return as the payment is made every day.

You can withdraw the money out as and when you please, so no need to wait a certain period of time to draw down funds and get penalised for doing so, like with most savings where you are offered a high return.

[YolandoAmaya]

You have to search for a high yield savings account, but it also has some risk. If you want to select a short term savings account (less than four years), then its ok. Since short-term CDs cannot compete with the high yields of an online savings account, it concern lack of access to your money is worth the additional interest earnings.