Three years is not enough time to invest for growth, so you should consider extremely safe and conservative investments for these funds if you can not afford a loss. Your safest route will be FDIC-insured accounts. If you want to get more creative and can stomach some loss for a chance of gaining, a blend of highly rated short-term bond funds and other income producing funds may work depending on your willingness to take risk. I would advise most to consider keeping it in the bank.
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