Where to save for a down payment?

[Blake King]

Hello Everyone!

I am starting to save for a down payment on my first home. I want to have 20k by April 2018. I am just out of college, and the last 3 months out of school i have been working full time and have been extremely aggressively paying off my student loans, while i was figuring out my financial plan. I currently live at home, and have no doubt i will be able to save the amount i stated above, but the question i am looking at is where to hold these funds. Should i keep my down payment and my continual contributions in index funds, money markets, savings account, buy bonds? Im looking for ideas here and opinions on where to save, i dont want to keep the down payment savings in my savings account where i get .02% interest. 

All ideas will help, but very specific examples would really help, as in where you actually do the investing if you do. 

Thanks Everyone!

[Dan Rudolph]

I keep my cash in VCSH (Vanguard Short-Term Corporate Bond ETF).  It maintains a pretty consistent value while kicking off a yield of just over 2%, so you are at least keeping up with inflation.

VCSH can be bought/sold commission free on TD Ameritrade (requires 30-day hold).