Where to keep emergency savings?
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Anonymous
| Wondering whether it's best to keep "emergency savings" in a savings account, CD, money market, something else? What do others do? TIA |
Anonymous
| We keep ours in GE high interest savings account so it is very accessible. |
Anonymous
| How about a Roth? You can remove your principle $ at any time without penalty. |
Anonymous
| Do a search here - there are lots of posts with this same question. |
Anonymous
| Bricks of cocaine are always going up in price and a pretty liquid commodity. |
Anonymous
| Anything FDIC insured. |
Anonymous
|
I can hang on to it for you.
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Anonymous
| We keep ours in mutual funds where we can get funds within 24 hours if need be. That way they money is constantly growing faster then it would in a traditional savings account but is still easily accesible. |
Anonymous
| We keep the emergency fund in some short-term bond-based mutual fund at Vanguard. I forget which one. I think I found it via some write-up in a magazine or website. Slightly better rate of return than a simple money market fund, and very stable returns. Also, since it's a bond fund, it's somewhat hedged against our other savings in equities funds. |
Anonymous
What if the fund goes down in value? |
Anonymous
| ING direct account. Makes pennies each month but it's there if we need it. That's the point! |
Anonymous
| I keep in my 5% savings account. |
Anonymous
What? Where do you get five percent? |
Anonymous
|
A combination of ING savings and couple long term "higher" interest CDs (7yr, 3%). I would forfeit interest if I have to cash any of the CDs in, but the principal is protected and insured, and even if I have to cash it in the remaining interest would still be more than if I left it in the <1% savings account.
I have been in a situation where I had to take money out and it was in the market during a down time....that was painful. over time I am giving up some potential gains, but it's nice to know the money will be there when I need it, because with my luck I won't need it when the market is doing well. |