In a few months I will be getting a settlement from a car accident. I'm going to pay off my debts then I was putting the rest away until Billy comes home which will be in 2 years 9 months.

Generally speaking, which would be better, a savings account or a 2 year CD? :hmm:

Just curious,

You're probably going to get a higher interest rate w/ a CD, since you cannot take the $ out prior to the end of the term. Although all the rates are pretty pitiful right now. If you want to be able to access the money in an emergency, then go for the savings account. If you won't need it, I'd be tempted to go for the CD.

: ) Colleen

In checking interest, you might look at U.S. savings bonds and see what they would bring in 3 yrs.

First of all, I have to wait to see how much I'll be getting. After I pay my debts, I was going to put 75% away and 25% in a savings account for emergencies.

the split sounds good. you can also check into an interest bearing ckecking account. they tend to be high cuz they do not exspect you to leave the money in it.. so just check the rates and see what they think in comparision...

Thanks for your advice Shortie...I'm still considering all the options.

Denise: You're definately better off with a CD ~ most savings accounts have really low interest rates. Depending on the amount of your settlement, you may also want to look into a mutual fund. ;)

I AGREE-CD IS THE WAY TO GO-OR INVESTMENT IN A EQUITY INDEX FUND

Thanks...I'm just waiting for a dollar amount before I decide anything. My attorney has sent a demand in to the insurance company. They can't fight it because they've already agreed to fix my car months ago...All my attorney has to do now is negotiate a dollar amount. It will take a few months.

if it is a whole lot of money, i might consider consulting with a financial advisor

Sherri,

It probably won't be that much...If I don't put it away, I'm sure it'll burn a hole in my pocket. Putting it in something that I can't tap into is a better option for me.

I believe then a CD would be a better way to go or something along those lines that you can't touch or would be hard to take out until Billy comes home.

In a savings account it would be pretty easy to take the money out for "needed" things. I know that for a fact...had too many "needed things", now the savings is pretty low! Hard to put it back as well...

that is true money does tend to put a hole in your pocket..