I have $1,000 to put away upfront and then $500 a month after to that?

What savings or investment account should I open with the following:

$1,000 upfront
$500 every month
$2-3years without needing it

I want to try and save for a down payment on a home in around 2.5 to 3yrs ... what do you suggest I should put my money that will give me the largest gain on return and interest.

Joe,

Look for a high yielding money market fund or savings account (E-Trade or ING come to mind). If you need the money in 2-3 years, and are adding every month, that is too short of a time period for investing elsewhere. You might put original $1,000 in a 2 year CD and get a slightly better rate.

Maybe a CD account. Usually stocks are for a long term investment unless you can think of something that would make a good profit in a few years that you can withdraw when it reaches a high.

But what if the stock market hits rock bottom when you need a house? That is why something stable would be better. You could cchose a CD account after you've made a profit from the stocks. Then you could close out your stocks and transfer them, so when you needed the money, it would be available when the CD account expired.

I GUESS U CAN BUY SOME STOCKS THAT HAVE POTENCIAL OF GROWING ABOUT 15%PER YEAR LIKE APPLE, GOOGLE, ETC. BUY IT WITH THE INITAIAL $1000, THEN JUST KEEP BUYING MORE INTO IT EVERY MONTH

I am sorry to say that best practice would dictate CD or Money Market. Look at ING or other hi yield banks - no stock can offer the certain return in a 3 years window - can you afford to loose 20% of principal - doubt it. Yes, you'll only see 4.5 to 5% gain, but at least you'll not lose principal. Do not let the desire for profit outweigh the risk in the short term.