Established Contributor
Posts: 855
Registered: ‎06-29-2010
Re: Good way to invest 30k for 1 year??

On another financial site some folks recommend getting a CD for a longer term if it has a short interest penalty (i.e. 2 or 3 months).


For examply, Ally offers 1.77% for a 5 year CD, but the penalty is 2 months interest for early withdraw -- which will reduce your effective rate down to 1.475% for one year.


Other than that, there are rewards checking accounts out there that offer better rates -- but you have to jump through hoops like setting up automatics ACHs and/or direct deposits, signing up for emails statements, logging into your account regularly, and using the check card a certain number of times each month.


Nothing other than FDIC insured deposits, or short term treasuries held to maturity (which should have lower rates) would be recommended due to your very short time horizon -- you have no time to recover from any market setbacks.