It would be my recommendation that money being saved for a house down-payment not be invested in the true sense. There is simply too much risk for such a short time frame.
That being said, a CD with a maturity approximating when you will need the funds would be appropriate. For a longer time frame (say, 3-5 years), a fixed annuity could also be appropriate (which would yield you more than a CD and be nearly as safe).
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