$$ for our adoption-where to save it?

[hopefulfirefly]

My dh and I plan to start the adoption process in the next 1.5-2 years. We have 20K saved so far and plan to contribute monthly to this account. Currently, the money is in an ING savings account. I don't need the money for another year and a half or so, but I cannot afford for it to lose any value. Would a CD be my best option? I think my ING account is at 3.something interest rate. I hear people talk about 5% checking accounts...is there a reason I shouldn't try to put the money in one of those? Thanks for your help!

[maat55]

Provident direct has an 18 month cd at 4%.

[skydivingchic]

All the 5% checking accounts I have seen require a minimum number of debit card transactions per month - usually 10-15 - in order to earn the 5% interest. So unless you want to combine your checkings and savings into a single account and have a way to visually keep the adoption savings money and your checking account money seperate, these accounts probably won't work well for your purpose. Also, most of these accounts cap the balance you can earn the 5% on, generally $25,000.

That said, I do have a 5% checking account and keep a portion of my savings in it. I use Mvelopes, so it is easy for me to keep things seperate. A spreadsheet would work as well.

Otherwise your best option is either a high yield savings or a CD.

[Ima saver]

I agree, get the highest paying c.d. that you can find.

[mom2manyboyz]

Congrats on adopting! I adopted my youngest son.

I'm not sure if this is for you, but if you adopt a child with "special-needs," which is defined as anything from foster-adoption, adoption of more than one sibling, adoption of a child with a disability or adoption of a child that is not an infant, the adoption cost is often covered for you.