Stock Markets Exposed - Mutual Fund, Stock, Money Market savings, whats the best way to save long term for a down payment on a home?

Mutual Fund, Stock, Money Market savings, whats the best way to save long term for a down payment on a home?

If I am starting with a really low amount like 1000.00, what is beneficial? Or is it even worth it?

Zopa has the best interest rates I've found. They're an online lending and borrowing exchange that operates in the UK, US and Italy. (I am based in the UK.) You've probably noticed that banks take the money you put in a savings account, and pay you around 6%. They then lend that money in the form of loans at much greater rates. Zopa cut out the banks, and let you lend directly to borrowers of good credit rating, so you keep all the interest. You can choose your own rates as well. I'm currently getting 7%-11%pa, and am very satisfied with it. There's a special offer on at the moment, if you apply via the following link: http://www.zopa.com/member/The%20Hulk and lend out more than £500 in the UK, Zopa will give you a complimentary £30. If you're in the US, it should automatically redirect you to the US site, and there should be a similar offer. Have a look at it. It's a really good scheme.
If your time frame is under five years, stick with cash (CDs and money market funds).
As above, less than five years a money market is great. Over five years then go with a good mutual fund with a long track record (10 years or more).