<prompt> Human: My dad is taking out a loan of 250k with an interest rate of 3.1. He wants to invest this money with the hopes of a return equal to or greater than the interest and fees associated with investing for the next 2-3 years. At that point hell likely use the money to purchase a new house and cover expenses until hes able to sell his current home. His house is paid off and has an appraised value of 375k. He can easily afford the monthly payment on the loan. If the investment doesnt outpace the interest then hes made a bad financial choice but not a crippling one. On the other hand, I dont want to see him lose a significant portion of this money in the event of a market downturn. The safest place I could think of, but not ideal, would be a savings account that could negate part of the interest while safely storing the money until its needed. Is there a reasonable place to invest this money that would result in a greater return without over 2-3 years while keeping it somewhat liquid?  <response>: Every bank is sitting there doing this math everyday. If we loan money at 3.1 with X risk, should we instead earn 3.1-Y at 0 risk. This is literally their purpose. Odds are that you cant beat their math unless you are lucky. 