A bit of background:
My wife and I have a combined income of over $100k (before taxes, retirement, etc). We both put 15% of our paycheck into a 401(k), and we have no debts of any kind. We pay off our credit cards in full every month.
Currently, we are saving for a down deposit on a house, and as a result we have $35,000 that is just sitting in my bank account. We live modestly and save around $3000 a month so our savings are growing quickly.
My question is: what should I be doing with this money while we save for a down deposit? I know it is bad to simply keep money in a bank account due to inflation, missed investment opportunities, etc, but we want the money to be easily accessible when it comes time to purchase a house. Is there a wise, safe investment strategy I can make that will allow me to easily and quickly withdraw the money when the time comes?
Some of our friends advise us to purchase a house now, but we are trying very hard to get to a 20% down deposit, which would be around $50k for the kinds of houses we have in mind.