I’m getting a lot of questions about “chicken money” lately! Chicken money is money you can’t afford to lose. And it’s pretty clear that your $20,000 falls in this category.
Sadly, the answer is there is NO safe place to put the money –with no chance of loss — that pays much more than money in the bank. Sure, some banks pay a bit more interest, but it’s probably not worth moving it. By the time you take it in and out again, you’ll have lost a week or two of interest so the yield will be comparable.
Blame it on the FED for keeping rates at almost zero. They don’t care about savers. But low rates make it easy for the government to borrow money to give away!!