No. of Recommendations: 2
One to three years is not long enough to take significant risk. Even if this is just for a vacation, new car, whatever, it is better no know what you'll have in that short of a time. "Honey, remember that money I invested/saved for your new car? Drive past the Lexus dealer, we're getting a Yugo!" or "Remember that cruise? Do you want the front or back of the canoe?".

Three year CDs you can find some around 3%, go out to 5 years and you get 5%. Bonds, if cash out before maturity you can lose principle. Seems like your options are limited.

Personally, I do CDs and MMFs for things I'm saving up to buy.


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