How to Money · Monday, September 28, 2026
Savannah plans to use $39,000 from cashed savings bonds for a down payment on a new home within a year. She asked if her high-yield savings account earning 3.6% is the best option or if there are better alternatives. The hosts strongly advised against taking on investment risk with funds needed so soon, recommending keeping the money in a safe, liquid account like a high-yield savings account or a money market account, emphasizing principal preservation over potential gains.
“So my question is, is it smart to keep it there since we plan to use it within a year, or are there better options that we should consider?”
“There really isn't much risk you can take on to try and increase this principal amount that won't keep you up at night.”
“So the name of the game for you, Savannah, at this point in time is to not maximize your returns, but to maximize liquidity and maximize the accessibility that you have to that money.”