I’m putting away $300 a month, my question is where to put it. savings account has basically 0 interest, there are HYSA (high yield savings account) that would give me 3-5% apy, or I already have some money in stocks that have grown consistently 25% over the last year (index funds only)

what would you guys recommend? I’m looking to buy it probably 3 years from now. that way either I’ve got a fat down payment or I can just buy it cash

thanks

  • ryathal@sh.itjust.works
    1·
    2 days ago

    If you want to save less than 5 years, banks with CDs or high yield accounts are your best bet. The stock market is far to volatile for short term saving, you really need need 5-7 years of investing to make growth likely.

    With cars specifically, an option is to use existing car + bank account to buy a better car for cash on a 6 month to 1 year timeline. This works because at the low end cars don’t really deprecate until they break. This stops working well in the 10-15k range.

  • RBWells@lemmy.world
    0·
    2 days ago

    High yield savings account or the short term Treasury bonds, and good luck with this, I hope at the end you have enough for a car AND no need for a car so you just have money.

  • roofuskit@lemmy.worldEnglish
    0·
    3 days ago

    There are some personal finance communities on Lemmy that would likely be eager to answer this one for you. Seems like communities you might be interested in if these kinds of questions are important to you.

      • ShepherdPie@midwest.social
        1·
        2 days ago

        As opposed to random people who wrote their opinion on a webpage or something? These groups are great for crowdsourcing lots of ideas you may have never even considered, and its not as if saving for a car is some niche topic. Can you point to any comments here that seem like bad advice?