Where to put proceeds from home sale

[Butcher]

Hey everyone, my family and I just sold our home and we bought land to build on this coming year. But with winter upon us we are having to wait until spring. Should I park the sale proceeds in a high yield savings account? Regular savings ? I dint want to do a cd because who knows when for sure we can start and dont want it holding anything up. Open to suggestions
Thanks

 

[kwyeewyk]

 

[npaden]

BTC!

 

[MTGomer]

Talk to your banker. They may be able to do some kind of short term CD

They like large sums of money. So I’ve heard. Maybe will find out for myself someday.

 

[Southern Elk]

Talk to your banker. They may be able to do some kind of short term CD

They like large sums of money. So I’ve heard. Maybe will find out for myself someday.

A 3 month CD gets you the highest rate right now.

 

[JohnCushman]

I can give you my bank information....

 

[Laszlo Cravensworth]

I can give you my bank information....

When I saw that you were the last comment on this thread I was really expecting something else...

 

[BigHornRam]

Hey everyone, my family and I just sold our home and we bought land to build on this coming year. But with winter upon us we are having to wait until spring. Should I park the sale proceeds in a high yield savings account? Regular savings ? I dint want to do a cd because who knows when for sure we can start and dont want it holding anything up. Open to suggestions
Thanks

Stage your cd's with a 3 month, 4 month, and 6 month. Don't need every dollar available, when you break ground.

 

[jimh406]

I think high yield savings account makes sense although high yield is just over 5%.

You have time to get in on the Santa Claus rally, but that requires some knowledge to safely invest in ETFs.

Another consideration is to make sure any CCs are paid off if you carry any balance. I wouldn't pay off cars since they usually have relatively low interest rates.

 

[rogerthat]

Money market account destroys a high yield savings account right now

 

[homers]

Online HYSA for short term safety. If the amount is above the FDIC, split across multiple banks

 

[BlakeA]

I would pay off all consumer debt and any and all loans. Put the remaining in a money market account since it's short term.

 

[Butcher]

Thank you guys for the input. I was considering paying my only loan off which isn’t much, its a vehicle. I think I have 10k left. Not sure if I should or not. We will have to doa loan for the build but should have a nice chunk for a down payment. And that will be the only loan I have. God willing

 

[brymoore]

Thank you guys for the input. I was considering paying my only loan off which isn’t much, its a vehicle. I think I have 10k left. Not sure if I should or not. We will have to doa loan for the build but should have a nice chunk for a down payment. And that will be the only loan I have. God willing

Paying off another loan depends on if you need the funds for the down payment amount.

I’d keep the funds liquid in either a money market or high yield checking account. Rates are in a downward trend that should continue in 2026.

 

[TN2shot07]

Thank you guys for the input. I was considering paying my only loan off which isn’t much, its a vehicle. I think I have 10k left. Not sure if I should or not. We will have to doa loan for the build but should have a nice chunk for a down payment. And that will be the only loan I have. God willing

If that’s your only loan and you do want to pay it off set that money aside and do it once your mortgage loan process is complete. You don’t want to negatively affect your credit when you’re about to apply for a loan. (No debt isn’t good for your credit score)

Depending on the funds you’re looking at the staggered CD’s are probably the best way to maximize return but a high yield savings offers the most flexibility. Don’t over think it, the return between those options probably isn’t material anyway for that short time frame. Just don’t let the bank have it for free

 

[seeth07]

Rather than stagger cd's you could just do numerous standard 6 month ones and if you end up needing some funds, stopping just 1 or 2 short of completion typically isn't the worst especially if you're at least 4 months into it

 

[jimh406]

I was considering paying my only loan off which isn’t much, its a vehicle. I think I have 10k left. Not sure if I should or not.

I'd save the cash. You can always pay it off later. The amount of interest you save for a few months wouldn't be much unless you have a really high interest loan.

 

[Moserkr]

Don't pay off the car loan unless its high interest, which Im guessing its not. Id go for a high yield savings account, and not put more than $250k in it. Use multiple banks if necessary to fulfill the amount you need to stash away.

 

[BigHornRam]

Thank you guys for the input. I was considering paying my only loan off which isn’t much, its a vehicle. I think I have 10k left. Not sure if I should or not. We will have to doa loan for the build but should have a nice chunk for a down payment. And that will be the only loan I have. God willing

You will have to do a construction loan, or take out a line of credit loan, if you qualify for one, to build the house, then roll it into a mortgage. Building costs are high right now. Make sure you have enough resources tto complete the build.