I am not planning to escrow my taxes when I buy my home. What kind of savings or investment account should I open to save the money and earn good interest without penalties and fees when I withdrawal my tax payment at the end of the year?
2007-07-19 07:47:21 · 3 answers · asked by becrebec1004 2 in Business & Finance ➔ Personal Finance
Interest bearing, money market savings.
Interest will not be high.
Search the internet for the highest interest rate.
Deposit a bit more each month so as to leave a balance when you make the withdraw.
2007-07-19 07:52:01 · answer #1 · answered by ed 7 · 0⤊ 0⤋
Property taxes are probably due twice a year. In CA they are due November 1, 2006 and February 1, 2007 for the tax year (July 1, 2006 to June 30, 2007).
If you plan on accumulating (monthly) the money to pay the taxes, a money market fund would probably be your best choice. Chose a MMF with a good yield, easy deposits and easy withdrawals. You should be able to find one paying 4+% per year.
2007-07-19 15:01:57 · answer #2 · answered by skipper 7 · 0⤊ 0⤋
Sometimes you do not have a choice to escrow or not. A CD would be you best option. You can get rates in teh 5% range.
2007-07-19 14:53:51 · answer #3 · answered by mike p 1 · 0⤊ 0⤋