Is there a reason to keep a down payment in a regular banks saving vs investment bank? Anything related to taxes etc? Sorry if this is a basic question.

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Werewolfdad t1_jadx52x wrote on February 28, 2023 at 7:08 PM

#2,118,812

There is a very small risk of loss in a MMF (but if a government money market at vanguard goes bust, we’re probably all dead)

retroPencil t1_jadx7mt wrote on February 28, 2023 at 7:08 PM

#2,118,841

More money you make in interest, more you dollars you pay in taxes. You will never net less money from moving to a high earning account.

nozzery t1_jadxj9z wrote on February 28, 2023 at 7:10 PM

#2,118,943

How long are you going to hold it? 1mo TBills will get you 4.6% with no state taxes (which increases your effective rate)

SRV1981 OP t1_jae0557 wrote on February 28, 2023 at 7:27 PM

#2,119,809

Replying to nozzery (#2,118,943)

I am starting to slowly considering buying something and can see myself potentially doing the following:

Buying in the next 6 months
Buying in the next 12 months
Choosing to continue to rent and roll down payment into investment index funds

nozzery t1_jae1bna wrote on February 28, 2023 at 7:34 PM

#2,120,185

Replying to SRV1981 (#2,119,809)

So buy tbills of less than 6mo. Easy, and no state income tax. Trade, fixed income, search, treasury, sort by YTM, depth of book, buy, done. YTM is your interest rate, as long as you hold until maturity.