If your time horizon is more than a few years then consider investing it. If you wish to keep it safe but maximize interest then consider laddering CDs.
5 CD Ladder to maximize interest and simplicity
Purchase a 1 yr CD, 2 yr CD, 3 yr CD, 4 Yr CD, & a 5 yr CD
The laddered CD approach would build liquidity because as the 1 year matures, you would purchase a new 5 year CD, the 2 year would only have one year left and when it matures, you purchase a new 5 year CD. After 4 years, all CDs will be 5 year CDs with one maturing each year which creates liquidity and helps in a rising interest rate environment.
Can be done in any length such as 3, 4, 5 years or more depending upon the products offered at the bank and whether the rates justify locking your money up.
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