If I were to have say $10,000 and have not decided what to do with it yet, is there such a thing as a temporary"holding account" I could use instead of in checking or savings. Or what do you suggest until I decided how to invest - just to keep it separate for now?
2007-01-30 07:17:48 · 5 answers · asked by Murphyboy 4 in Business & Finance ➔ Investing
Open up a brokerage account and upon the transfer into the account the cash will automatically be held in a cash account. Make sure the cash account is a money market fund (typical money market funds are earning around 4.5% (30 day yield)). The funds will simply sit in the cash account until you invest the funds or transfer the funds out. Beware that some brokerage firms are now using a savings account with terrible rates (1%) or so for cash holding accounts so before opeining the acccount make sure to check on the type of cash account and the current returns.
2007-01-30 07:30:16 · answer #1 · answered by SmittyJ 3 · 0⤊ 1⤋
I would suggest either a CD (short term of course), savings account, or a high interest money market. That way when you do decide where you want to put your money, you can get it easily.
2007-01-30 07:27:06 · answer #2 · answered by are_see_bee 2 · 1⤊ 0⤋
Definitely keep it separate from your regular account--try a money market account.
2007-01-30 07:23:41 · answer #3 · answered by bizriak 3 · 0⤊ 0⤋
Open an account at a brokerage that has a high rate money market - E*trade has one that pays 5.05%....when you decide on what you want to do simply move it out
2007-01-30 07:51:18 · answer #4 · answered by dashel_gabelli 3 · 0⤊ 1⤋
Why not just use a savings account?
2007-01-30 07:22:35 · answer #5 · answered by tamali 2 · 0⤊ 1⤋