Help! What do I do with this cash?

[LivingAlmostLarge]

Good plan!

[scfr]

Congratulations on being debt free.

As for where to put the emergency fund, it depends on a few factors.

Are you disciplined about NOT touching money in the bank? Or could you use a little help in the self-discipline department? If you need a little self-imposed control then a CD might be a good option, because the funds are there if you really need them but a little bit harder to access.

Do you plan to use the money for those "life happens" inevitable but irregular expenses (such as car repair, vet bills, etc)? If so, then a savings or money market account might be a good option.

Is there any chance that a portion of the EF will go towards a down payment? If so, then stick with a savings or money market account.

And splitting the money up (some in a savings account and some in a CD) is always an option.

If you decide to go with a savings or money market account, you might earn more by going for one that pays a new account bonus rather than one with a "higher" interest rate. One note of caution: Find out if a bank will do a hard or a soft credit pull when you open a new account. Since you plan to buy a home in about a year with a mortgage, you'll probably want to stay away from banks that do hard pulls so that you don't negatively impact your credit score.

[clatoden99]

In order:
pay off credit cards
pay off student loan
save for down payment
buy new cars (don't do this)