Emergency funds: where do you have yours?

[Anonymous]

Our emergency fund, earning 4.8% in a credit union certificate, will mature soon (the current rate for the same certificate is 2.4%). Any recommendations on a good place to keep "ready" but hopefully "never need" money?

[Anonymous]

internet bank/CDs/i-bonds.

2.4% is actually a pretty good rate I think.

[Anonymous]

We use a credit union MMSA. We could not find a CD with a decent yield, and most CDs now have high penalties for early withdraw - not just a % of the interest earned, but a % of the principal.

[Anonymous]

Funny that the back could penalize early withdrawal. I'd think they'd pay me to cash out my 4.8% certificate. But I guess times are a-changing.

[Anonymous]

I keep mine in a pillowcase. stuffed in a box in the basement.

[Anonymous]

Anonymous wrote:I keep mine in a pillowcase. stuffed in a box in the basement.

Awesome, what kind of interest is that earning?

[Anonymous]

Interest bearing checking (2 months) account plus CDs (3-5 months worth).

[Anonymous]

I-bonds are 2.2% right now, no redemption for 1 year, 3 month penalty before five years, 10k limit per SocSec#, per year.

Cardinal bank has been offering this deal:

http://www.depositaccounts.com/blog/2012/01/checking-account-rate-deal-at-cardinal-bank-in-va-md-dc-local-only.html

But who knows how long the interest rate will last

Personally I keep the first month's expenses in an ING account, the next two months in IBonds, and the excess gets shunted into VBISX. At the end of the year I shave off some of this to buy more IBonds in anticipation of college expenses.

[Anonymous]

We keep ours in a combo of CD ladder and one savings account -- all at ING.

[Anonymous]

That Cardinal rate looks pretty good.

[Anonymous]

We have accounts at two credit unions (we both had these before we got married and still keep them, although both names are now on the accounts). We keep the money in the MM-prime accounts at these institutions getting between 1.5-2% interest. We do that so that we maintain the minimum balances for the highest level of free membership benefits at each institution. And we do use the free traveler's check, notary public, and extra electronic monthy transfers that we get with those benefits. And this way the money is liquid without penalty for withdrawal in an actual emergency.

[Anonymous]

Internet bank, MMSA, and some stocks (that are being held for long term but could be sold in an actual emergency).

What's the best way to buy I-bonds?

[Anonymous]

where do you have a MM account pulling 1.5%?

[Anonymous]

Anonymous wrote:where do you have a MM account pulling 1.5%?

I'd love to know that too. The max our credit union offers is .70% and that's if your balance is over $100k.

Right now we have our cash in an Amex online account. I noticed earlier today it's earning .75%, although the advertised rate is .85%. I chose that one over ING because at the time the Amex rate was higher. But I'm definitely going to look into that Cardinal offer.

[Anonymous]

Money market fund, earning bupkis.