Then again, there’s always CD’s for convenience. Invest up to the FDIC limit ($100,000) in 10 different banks. The real problem here is that most of the banks offering the highest rates are mortgage lenders on the verge of being shut down by regulators. Indymac, Countrywide, et al, are some of the names that pop up. And CD’s include penalties for early withdrawals, so getting all of your money at once could be a financially painful experience.
There are plenty of banks that are not going to be closed down, so CD’s are the answer, have them split up, $100,000 in each one, with a different due date. You could have them guaranteed by the FDIC, one come due each month, so you would have access to them if need be, collect, let’s say $ 50,000 per year interest. I just renewed one for 5.7% at a very stable bank, Wells Fargo...