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Investing loan disbursements over short term(very short term)

Discussion in 'Finance and Investment' started by NYyanx28, May 14, 2007.

  1. NYyanx28

    NYyanx28 7+ Year Member

    330
    0
    Dec 16, 2006
    New York
    I have been looking into various CD's and high interest savings accounts for my loan disbursement money. Come August, I figured out I will be getting roughly $7,000 and another $7,000 coming in January. I would like to find any type of high interest account for this money to sit in as I withdraw for housing, food, misc, etc. Therefore, I would be looking for a CD with no penalty for early withdrawal, etc. I have no interest(pun) in saving for the long term and would just like to earn a few extra dollars every few months. Any ideas?
     
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  3. spicedmanna

    spicedmanna Moderator Emeritus 7+ Year Member

    I just thought I'd point out that I have heard that it is usually illegal to invest money that is disbursed for educational purposes. You may want to check on the legality of the issue before going forward with ideas of how to do it.
     
  4. etf

    etf Moderator Emeritus 10+ Year Member

    3,066
    9
    Apr 27, 2005
    well, if it's illegal, they certainly don't enforce it, as my brother has several tens of thousands of dollars of loan money in the market. i'm sure the loan company might have gotten the hint when the check was endorsed by fidelity brokerage services.

    oh, and i doubt putting money into a fdic-insured certificate of deposit is illegal, as it isn't even considered (by most) to be an investment per se.
     
  5. IceMan0824

    IceMan0824 Holy crip, he's a crapple 5+ Year Member

    843
    0
    Dec 7, 2006
    Have you considered the short-term tax rate on the amount you might make? If your interest is taxed at your income level, it might not make sense to even bother.

    I don't think they make CD with no penalty to early withdrawal, but I could be wrong. Why not just put it into a high yield savings account, and have access to that money. You might not be killing the market, but at least your money isn't losing value to inflation.
     
  6. blanche

    blanche #$%&*[email protected]!!#? 7+ Year Member

    http://bankdeals.blogspot.com/

    this dude or dudette keeps tabs on online savings accts, CDs, etc that have good rates. i think if i were you i'd park the $$ in a good online savings account, 5% (or 6% at best) isn't bad and it's pretty easy to trasfer $$ to and fro.
     

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