Where to park savings?

[Juan Campos]

Hey guys, so I'm saving to invest in my first home here in the next 10 months, I was thinking putting my savings in the bank doesn't do me any good, maybe for liquidity and stability

However 10 months is a while and so I was wondering.

Where do you guys park your savings?

Cd?

Bank?

Index funds ?

Thanks in advance

[Nader Hachem]

Hate to say it because i'm in the same position, but the right answer would be in a high yield savings account. HYS are probably around 1% if you're lucky. Since you need your money in ten months, think of inflation as your cost of safety. Inflation is what it's costing you to keep your money safe.

The worst thing that could happen would be to invest in index funds and they end up dropping more than inflation will be over those ten months period, which is a real likely possibility. ( not predicting the market will go down, but its very possible!