I have some money that was left to me - 415K. I want to use it to build a house in about a year from now. Meanwhile would it be ok to just let it sit in one bank, maybe in a CD for a year?
2007-07-03 14:57:42 · 8 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
you can put in the bank - but split between 5 accounts
FDIC only insures accounts to $100,000
They have interest bearing checking accounts as well
2007-07-03 15:12:16 · answer #1 · answered by Mike Frisbee 6 · 0⤊ 0⤋
If you are looking to use the money in less than a year then I suggest you invest your money. For a short time span and if you're looking to maintain the principal and grow some secure interest than invest in money markets. Ask the bank or an investment firm for advice. The savings account won't get you much in interest while the money markets will at least get a little more and be secure as well. For longer terms, ask the investment firm. Much of the answers you seek rely on your age, current financial status and outlook along with goals. Talk to a professional so that you can minimize your taxes as well.
2007-07-03 15:05:23 · answer #2 · answered by tparada13 1 · 0⤊ 0⤋
It would be throwing money down the toilet but yes it is fine (how many banks now a days do you know that go under...none so I wouldn't worry about it only being insured for $100k). You could put it in a mutual fund or even better a trust fund and be making money in interest hand over fist (probably enough to build the house with just the interest income). Go to your bank and ask to speak with their financial planner. They can get you onto the right track (usually free of charge).
2007-07-03 15:02:40 · answer #3 · answered by Anonymous · 1⤊ 0⤋
do you realize how fortunate you are, and how much responsibility was put on you with this much money? this can be a great gift, or a curse... depending on how you handle it.. yes, nothing wrong with sitting in a CD for a year until you decide what to do with it.. in fact, do NOT invest in anything that you don't totally understand.. you will lose money.
do not blow it.... don't waste it... don't buy a big house that you can't afford...
you could retire today on this much money... if your careful with it... If you had no debt and $10,000 in the bank, you would be among about 3% of Americans today..
you should call dave ramsey.. he would give you wise advice on what to do...
ps. don't take financial advice from broke people! you will lose money that way too
2007-07-03 15:09:23 · answer #4 · answered by Anonymous · 0⤊ 1⤋
you must to put your money on different banks. because like here in the Philippines the maximum amount of money insured by the government in case the bank get bankrupt is up to 250k only. or you might as well invest your money on stocks perhaps, because it will give much higher interest but it will be risky on your part.
2007-07-03 15:07:51 · answer #5 · answered by ronnel 1 · 0⤊ 0⤋
No i think you should spread it out into the different accounts like a checking, savings, CD'S, and investing account. but if their all at the same bank that should be okay just in different banking accounts.
2007-07-03 15:03:59 · answer #6 · answered by trueworship712 2 · 0⤊ 0⤋
Not wise, since FDIC insurance wouldn 't cover that much, but not illegal. Splitting it up between banks would be good - and not just different branches of the same bank.
2007-07-03 16:00:25 · answer #7 · answered by Judy 7 · 0⤊ 0⤋
yes, you could let it sit in a bank if you were going to use it in a year.
Check with an attorney regarding any tax consequenses of the gift.... you may owe income tax on the gift.
2007-07-03 15:03:42 · answer #8 · answered by Leah 4 · 0⤊ 0⤋