Due to a death in the family, we've received a decent windfall, and we plan to use it for a downpayment on a new home in the next 3-6 months, since our landlord let us know he's wanting to get out of the rental market. Instead of letting it just sit in our checking/regular savings account, we were considering doing a High-yield savings account, CD, or other "safe" short term investment. Any suggestions?
I would compare rates but a HYSA or CD is probably your best bet. I currently have HYSA accounts with Lending Club and Ally. I prefer the Lending club account because it will payout a higher rate if you make a minimum amount of deposits per month (I think its 4% right now). I used ALLY for a long time which has a good rate but is not as competitive. I believe there is also a good rate with Citibank but I would shop around and read the terms and conditions.
My mom is from the Boomer generation and greatly prefers CDs to a HYSA. I would suggest if you go this route to shop around especially at your local credit union. They tend to have pretty good rates. I bank with Chase and you really have to double check the rates because they can vary widely depending on what promotions they have or what min balance you have to keep in them.
If its cash you might need to touch before a CD term I would suggest a HYSA. This is what I prefer because I don't like the idea of not being able to access my money when I need it.
Hope that helps!