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Internet Savings Accounts for House DP


Limitedslip7

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I have a chunk of change set aside for a house down payment that is just sitting there depreciating in my checking account. My credit union offers a decent interest rate on a portion of it but nothing on the rest and the only other option for earning interest through the credit union is a CD.

 

Would it be a good idea to park the rest of it in an online savings account until I find something to buy? I can get 1.75% online but I'm not sure how mortgage lenders would view a large transfer back to my credit union right before the purchase. Anyone have any experience or recommendations?

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In my experience so long as you have the paperwork showing when and where the money went with a legit explanation it isn't an issue.

 

I had far "sketchier" stuff going on but had explanations and paperwork so it was kosher.

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If you've had the cash for less than a year or two (I forget exactly how far back Marc needed me to go), as long as you can show where the money came from (wages, gifts, inheritance, etc.) and how it shifted around, there shouldn't be any problem. If you've had it longer than that, then just existing on the initial statements and moving from shit checking, to savings, and back, will be sufficient.
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How long before you plan to use it?

 

In my oppinion the answer to your question is no, the lender doesn't care as long as it's not cash. Transfers from other accounts in your name are all allowed they will just want to see that those funds have been in the account for x period of time.

 

If you are talking about buying a house in the next 6 months it may not be worth the hassle but the best open is probably an investment account. At least that way you could grow at 1-2% per month instead of per year.

 

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The money has been in my account for quite a while but I don't have a definitive date on when I'm going to use it. Might be two weeks from now or might be two years. Waiting for the right house to pop up. I'd just like it to keep up with inflation if possible, although I know it's not with the way house prices are going...
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If you are talking about buying a house in the next 6 months it may not be worth the hassle but the best open is probably an investment account. At least that way you could grow at 1-2% per month instead of per year.

 

Any short-term investment like that would risk losing principle so he could in turn lose 1-2% per month or more.

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