I'm currently saving for a first home down payment (in USA), but don't want to keep a large pile of money sitting in a low-yield savings account while I'm looking for the right home. I want to find a place to earn some returns but where that money isn't subject to volatility risk and still easy to liquidate when the time comes. I'd also rather not have to dip into existing 401k or IRA accounts in the process (I'm still making contributions to these while I'm saving).

I'm unsure when I'll be buying a home, but possible not for another year or two, depending on various factors. I've been looking at online bond sellers like Worthy Bonds, which promises 5.0% interest (APR) and no-fee withdrawals any time. It seems low-risk, low-hassle, and obviously better than any standard bank savings account.

Before I invest, I just want to know:

A) Are these types of bond sellers as secure as they purport to be?


B) Are there better options that I'm not considering with similar security and liquidity?

  • 4
    Does this answer your question? money.stackexchange.com/questions/134563/… There are a number of similar questions, the Worthy Bonds piece may warrant a separate question but the short-answer is that it's not very low risk. One alternative is to expose a portion of your down payment to market risk and accept abysmal interest on the remainder, ie 80% of it in savings/money-market 20% in index funds if you can stomach some loss.
    – Hart CO
    Commented Jan 12, 2021 at 19:47
  • Interest rates should stay low for the next couple of years. A municipal bond fund might be a good place to put the money.
    – RonJohn
    Commented Jan 12, 2021 at 20:00
  • 4
    That website clearly states "Worthy is not a bank and investments in Worthy bonds are not bank deposits. They are not insured by the FDIC. Investing in Worthy bonds involves risk of loss. You should always carefully consider investments in any security and you should be comfortable with your understanding of the investment and its risks." but I haven't fully looked into it yet it does seem fishy or at minimum YOU SHOULD READ ALL OF THE TERMS.
    – MonkeyZeus
    Commented Jan 12, 2021 at 20:52


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