Comments on: Yet Another Savings Question

Question: Yet Another Savings Question

sprocket87 — Fri, 09 Nov 2007 10:18:18 -0800

How can I maximize my savings for a trip I'm planning for 2009?

The wife and I are potentially going to Africa in late 2009. I've got an HSBC Direct savings account (currently 4.5%), the contents of which I'm allocating toward this trip. There's currently just over $3000 in the account, and I add $75 every week. That'll grow pretty quickly, but I'd like to know what options are available for maximizing my return. Since the trip won't be for another 2 years, I figure I can make those funds relatively illiquid if it means a higher return.

So what options are there? Obviously nothing that would be considered a "risky" investment, as I want to ensure I have a secure savings accrued come 2009. But I'd like to have something that grows even marginally faster than inflation, eh?

Thanks!

By: Tomorrowful

Tomorrowful — Fri, 09 Nov 2007 10:21:20 -0800

Two years really isn't enough time to safely go with anything that might experience a significant drop, like stocks. Other than rolling your cash into higher-than-4.5%-interest CDs, keeping it in a high-yield online savings account is the best thing you can do.

By: salvia

salvia — Fri, 09 Nov 2007 10:47:31 -0800

You know about bankrate.com, right? You can compare rates on loans and investments. I just searched 1-year CDs and found one paying 5.07%.

By: croutonsupafreak

croutonsupafreak — Fri, 09 Nov 2007 11:16:13 -0800

Washington Mutual is doing a limited roll-out of 6% interest guaranteed for a year at some of its banks in Washington and Oregon. It's a weird account with all kinds of restrictions, but you might check your local branch to see if it's available there.

By: bove

bove — Fri, 09 Nov 2007 11:30:08 -0800

You could consider lending your money at a higher rate through a site like Prosper.com. This might entail slightly higher risk, but you can choose how risky a loan you decide to fund.

By: matildaben

matildaben — Fri, 09 Nov 2007 11:32:22 -0800

CD Laddering.

By: Diggins

Diggins — Fri, 09 Nov 2007 11:43:23 -0800

You could consider lending your money at a higher rate through a site like Prosper.com.

Prosper.com loans only come in three year terms, so as a lender, sprocket87 couldn't get all of his money back in time.