Where to Put $620,000 From a Home Sale for 14 Months

With $620,000 and a home purchase about 14 months away, compare access, insurance, and what remains after tax. In this example, savings at 4.00% leaves $20,543 after federal and assumed state taxes. Treasury bills at 4.00% leave $21,989 because states generally do not tax Treasury interest. These rates are examples, not current offers or promises.

Start with the closing date and the spending date

List when the money arrives and when you need it. Add planned amounts for the deposit, down payment, repairs, taxes, and moving. You may need some money before month 14. Keep that amount in an account you can use right away. Put only money you can leave untouched into products that come due later.

This guide assumes the entire $620,000 is available after closing, mortgage payoff, and closing costs. Some eligible sellers can exclude up to $250,000 of home-sale gain. Qualifying joint returns may exclude up to $500,000. The exclusion applies to gain, not sale proceeds (IRS home-sale rules). If any gain remains taxable—or you receive Form 1099-S—report the sale as the IRS directs. Ask a tax professional to calculate the amount.

You need this money in about 14 months. A stock fund, bond fund, or long-term bond could lose value before then. Compare what remains after tax, when you can use the money, and whether bank deposits are insured. A high advertised rate alone does not answer those questions.

Four ways to hold the money

Insured savings at one bank. This is simple and generally easy to access. The standard FDIC limit is $250,000 per depositor, per insured bank, per ownership category. Existing deposits in the same category at that bank are added together. If you place $620,000 in one individual account with no other deposits, about $370,000 is above the standard limit. The example does not assume special trust coverage or other ownership categories.

High-yield savings split across banks. The example divides $620,000 among three separate FDIC-insured banks, about $206,667 per bank. The standard limit is $250,000 per depositor, bank, and ownership category. No other same-category deposits or accrued interest push balances above it in this example. Check the legal bank name and any sweep allocations. Brands and account numbers do not create extra coverage.

Treasury bill ladder. A Treasury bill is a short-term loan to the U.S. government that you can buy or sell. You may pay less than its stated value, then receive that full value when it comes due; the difference is interest. A ladder splits money among bills due on different dates. If you sell early, the price and timing can differ. Treasury interest is taxed federally but generally not by states or cities. Bills are not bank deposits and do not have FDIC insurance.

Government money market mutual fund. This is an investment fund that holds short-term assets, often government securities and cash. You may be able to sell shares each business day through a brokerage account, but the value can fall. It is not a bank deposit and has no FDIC insurance. Fees, sale timing, and transfer time depend on the fund and broker. Read the fund documents and confirm how soon you can move the money before counting on it for closing.

CD ladder. The example puts CDs at three separate insured banks and assumes a 3.70% average yearly rate. It schedules $120,000 to come due by month four, $200,000 by month eight, and the remaining $300,000 by month 14. Check each CD's early-withdrawal penalty and due date. A brokered CD sold early may be worth less. This is a planning example, not an offer or a promise that you can withdraw without cost.

A worked 14-month comparison

For a different mix of savings, CDs, and Treasury bills, try the high-yield savings vs. CD ladder vs. Treasury bill ladder calculator. For bill due dates, use the Treasury bill ladder calculator. These tools do not replace your bank, broker, or tax documents.

The rates below are examples for comparing the options, not current offers or a forecast. The math multiplies $620,000 by the yearly rate and 14/12; it does not include compounding. It assumes a 24% federal tax rate and compares no state tax with a 5% state tax on taxable interest. It also assumes no fees or rate changes, no reinvestment, and no federal tax deduction for state income tax. Your tax rate and account rate may differ. The yearly rates are annual; each dollar amount is interest over 14 months.

At 4.00%, savings earns $28,933 before tax over 14 months. It leaves $20,543 after estimated taxes with a 5% state tax, or $21,989 with no state tax. Direct Treasury bills at the same rate leave $21,989 because states generally do not tax Treasury interest. At 5% state tax, that is $1,447 more than savings. At 0% state tax, the CD ladder leaves $1,649 less than savings, and the fund leaves $550 less. At 5%, those gaps are $1,541 and $514. Fees, changing rates, fund payouts, and actual tax rules can change these results. The yearly rates do not include compounding.

The table treats all savings, CD, and fund interest as state-taxable. Some states exempt part of a money market fund's distributions from U.S. government securities. Use the fund's year-end tax statement and your state's rules to determine the taxable share. The Treasury row assumes bills are held directly; TreasuryDirect says bill interest is federally taxable and exempt from state and local income taxes.

The access table assumes one owner, no other deposits at the same banks, and the three-bank split described above. FDIC insurance is generally limited to $250,000 per person, per insured bank, and per ownership category, such as single or joint accounts. NCUA's standard limit is generally $250,000 per person at each insured credit union, per ownership category.

For the deposit rows, the table reports principal coverage at placement. Interest that builds in the account also counts toward the limit, so check balances and any other accounts at each bank. Treasury bills and money market funds are not uninsured bank deposits: bills are U.S. government obligations, while fund shares are investments without a guarantee of principal. Access to money in a brokerage or fund account does not guarantee same-day arrival at a title company.

Match each account to when you need the money

Suppose you may need $120,000 in month four and $200,000 in month eight. You need the rest for the purchase in month 14. Keep the first $120,000 in an insured account you can use right away. Set another portion to come due before month eight and the last portion near closing. Do not choose a bill due after the wire date. Leave time for weekends, holidays, transfers, and closing delays.

In a bill ladder, you could split the amount across short maturities rather than buy one bill with a month-14 maturity. The exact schedule depends on auction dates and the closing calendar. TreasuryDirect and brokerage accounts have different purchase, transfer, and sale procedures. Confirm how you would access proceeds before building the ladder. Selling a bill early may require a brokerage account and can result in a different sale price from the amount you paid.

For a bank ladder, stagger CD maturities only for funds you can leave locked up. A CD that matures one week before closing may be less useful than one maturing earlier. Transfers, holds, and title-company requirements take time. Keep enough accessible for costs that may arrive before the purchase.

If you need same-day access, check wire cutoff times, transfer limits, fraud holds, and title-company instructions. An app balance does not prove a wire can be sent that day. Call the institution using a verified number. Confirm the process before closing.

List each expected payment and the date it must be ready. For example: “$120,000 by February 15,” “$200,000 by June 15,” and “the rest by December 1.” Add several business days of extra time. Keep the earliest payment in an account you can access right away. Put later amounts only in products due before those dates. If you are unsure when you will need the money, plan for the earlier date.

The date a bill comes due is not always the date cash reaches your bank. A bill due on Friday may not arrive in time for a Friday closing wire. A brokerage sale may take another business day to become cash, and a bank transfer can take longer or be delayed. Ask each provider how long transfers take, then schedule the bill and bank transfer with extra time. Do not rely on every step finishing as fast as possible.

Keep a simple record of each account owner, bank legal name, balance, maturity date, transfer method, and the person you spoke with. Update it after every maturity or transfer. This record shows which accounts share an insured bank. It can also flag a CD renewal that locks money past your purchase date. Store it securely with closing documents. Do not send account numbers or wiring instructions in ordinary email.

If more than one person will own the proceeds, decide how the accounts should be titled before opening them. Ownership affects insurance calculations, access if one person is unavailable, and tax reporting. Naming a joint owner just to reach a higher limit can create legal and tax consequences that exceed the benefit of a modest yield difference. Ask the institution what documents it requires and ask a lawyer or tax professional if the ownership choice is not straightforward.

When do Treasury bills leave more after tax?

Assume savings and Treasury bills both pay 4.00% a year. With a 24% federal tax rate and no state tax, each leaves $21,989 after 14 months. At a 5% state tax rate, savings leaves $20,543 while Treasury bills still leave $21,989. That is a $1,447 difference.

At a 3.80% Treasury yield and a 4.00% savings yield, bills break even at a 5% state tax rate. Above 5%, bills leave more in this example; below 5%, savings leaves more. This assumes equal federal tax treatment and state tax on all bank interest.

The bank account may still be better if quick access matters more than the estimated difference. You can also split Treasury bills so some come due earlier and others later. Compare what you keep after tax and fees, and consider the risk of selling early. Do not choose by the advertised yearly rate alone.

Who FDIC and NCUA insurance covers

FDIC coverage is based on depositor, bank, and ownership category. Separate account numbers at the same bank generally do not create separate $250,000 limits when the owner and category are the same. Joint accounts may qualify for separate coverage if they meet the ownership rules. Adding a family member does not automatically create coverage. Use the FDIC’s Electronic Deposit Insurance Estimator or ask the bank to explain the account title and coverage.

If you use a sweep program, ask which banks receive deposits and how it treats deposits you already hold there. Record the amount allocated to each bank. The intermediary’s brand name does not necessarily identify the insured bank. A money market fund held at a brokerage is a security, not an FDIC-insured deposit. Uninvested brokerage cash may have different protections, so inspect the account agreement.

NCUA insurance applies to qualifying deposits at federally insured credit unions. Its standard limit is generally $250,000 per share owner, per insured credit union, for each ownership category. This article’s FDIC example should not be used as a substitute for checking NCUA coverage where a credit union is involved.

Insurance applies to covered deposits, not to every product sold in a bank branch. A mutual fund, annuity, stock, or bond does not become an insured deposit because you bought it from a bank-affiliated office. Ask what product you own, who holds it, and which protection applies if the institution fails. A bank money market account may be a deposit. Confirm this with the bank. A money market mutual fund at a brokerage is a security. Read its fund documents. Similar names can describe products with different protections.

Do not try to create coverage by moving money among several account numbers at one bank. The FDIC generally aggregates deposits within the same ownership category at that bank. If your checking account already has $40,000 in that category, adding $250,000 to savings gives you $290,000 total. That leaves $40,000 above the standard limit. This is a coverage calculation, not a prediction that the uninsured portion would be lost.

Common mistakes and their dollar cost

Leaving all $620,000 in one individual account can exceed standard coverage. Under these assumptions, $370,000 is above the $250,000 limit. This is the amount above the limit, not a prediction that a bank failure would cause that exact loss. Confirm the account structure.

Chasing a temporary rate without checking its terms. A 0.50 percentage-point difference on $620,000 over 14 months is about $3,617 gross. At a combined 29% assumed marginal tax, it is about $2,568 after tax. That is the maximum illustrative benefit before fees, rate resets, eligibility caps, and transfer friction.

Locking the closing money past the date. A three-month CD penalty could consume interest earned in one month. It could take more, depending on the terms. Read the disclosure because penalties vary by institution. Keep money with uncertain timing liquid.

Treating an investment fund like insured cash. The fund may seek to keep its share price at $1. That is not a guarantee or FDIC insurance. A 1% loss on $620,000 would be $6,200 before any recovery. This is a stress example, not a prediction.

Forgetting tax withholding. Interest is generally taxable even if no tax was withheld when it was paid. On $28,933 of taxable interest, the 29% combined assumption implies about $8,391 of tax. Set aside enough for estimated tax or discuss withholding and estimated payments with a tax professional.

Forgetting tax on interest. The 4.00% savings example has an estimated $6,944 federal tax before state tax. Keep the year-end tax forms and include interest on your return.

A dated checklist for the next 14 months

Before investing: confirm the net amount that arrived after mortgage payoff and closing costs. Pick the minimum amount that must remain instantly accessible.

Within one business day after funds clear: verify that the receiving bank is insured and check existing deposits in the same ownership category. If using several banks or a deposit network, confirm each destination, allocation, title, and withdrawal route. Do not act on an unverified email or phone instruction to redirect closing funds.

Within the first week: write down the earliest possible purchase date and the expected wire amount. Match each CD or bill maturity to the schedule, then leave a cash buffer. Confirm outbound wire procedures with both the financial institution and the title company using known contact details.

At each maturity or monthly review: compare the next maturity date with the expected closing. Reinvest only the money that is not needed before the new maturity. Rates can change; do not assume a variable savings or fund yield stays fixed for 14 months.

Before tax deadlines: collect bank and brokerage tax forms and ask whether estimated payments are needed. Reconcile interest with statements. Keep sale and basis documents with the tax records.

One month before the purchase: stop extending maturities beyond the closing date. Confirm transfer limits, any holds, title-company wiring instructions, and the exact amount needed. Call a known number to verify wiring instructions; never rely only on a last-minute email change.

What to ask a professional

Ask a tax professional about your marginal tax rates and estimated payments on interest. Ask your bank or credit union to confirm insurance coverage in writing for the exact account owners and title. Ask a broker to explain bill sale timing and settlement if you may need to sell early. These questions matter more than a small yield difference if the money has a fixed job.

This comparison is educational. It does not know your state, existing bank deposits, ownership structure, purchase contract, tax basis, or exact closing date. Use actual account terms and current rates before choosing a plan.

Sources and as-of date

Reviewed October 27, 2026. Example yields and tax brackets are hypothetical inputs; no current rate feed was used.

• IRS, Topic No. 701, Sale of Your Home and Publication 523, Selling Your Home, accessed October 27, 2026.
• FDIC, Understanding Deposit Insurance and Deposit Insurance FAQs, accessed October 27, 2026.
• TreasuryDirect, Treasury Bills and Tax Forms and Withholding, accessed October 27, 2026.
• NCUA, Share Insurance Coverage and How Your Accounts Are Federally Insured, accessed October 27, 2026.