Saving for a home.A I'm a 35-year-old married sales rep with a 7-year-old. My ultimate goal is to buy a house or condo. I have a substantial amount invested in my 401(k) from a previous employer, and I have saved about $10,000. I want to put aside even more. What's the best way? --T. Versailles New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of While you have saved $10,000 toward your goal, it may take more than a year to save up an adequate down payment. You should consider reducing your 401(k) contributions at your current job and instead channel as much after-tax income as you can into a high-yield savings account Savings Account A deposit account intended for funds that are expected to stay in for the short term. A savings account offers lower returns than the market rates. Notes: . Interest rates on savings accounts from Internet banks have increased recently, so you may be able to get a good rate. In January, ING offered 3.8% interest on its Orange savings account (www.ingdirect.com), HSBC HSBC Hongkong and Shanghai Banking Corporation HSBC Humane Society of Broward County (Florida) HSBC Humane Society of Bay County (Bay County, Michigan) offered 4.25% for its online savings account An online savings account (OSA) is a savings account managed and funded exclusively on the Internet. OSAs are often characterized by high yields, which far surpass those of traditional savings accounts. (www.us.hsbc.com/1/2/3/personal/savings) and Capital One's high-yield savings account (www.capitalone.com) offered 4% interest. All of these options can be linked to your current checking account to make automatic deposits. These accounts have no fees and Iow minimum balance requirements. If your time horizon is a bit longer, you could purchase two-year treasury bonds for $1,000 each at TreasuryDirect (www.treasurydirect.gov), In January, the two-year U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. bond delivered a 4.37% interest rate. |
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