Where to put emergency fund money?

[Anonymous]

Got annual bonus and finally have some money leftover after paying off bills. We need to keep a chunk of it for an emergency fund. Where should we be putting this cash so that we earn some interest but would be able to access it quickly if needed?

I've heard that there are some online banks giving 2+% interest. Any recommendations?

[Anonymous]

Alliant

[Anonymous]

Goldman Sachs Marcus Account. All online and 2.25, although their CDs are higher.

[Anonymous]

Anonymous wrote:Goldman Sachs Marcus Account. All online and 2.25, although their CDs are higher.

Np I opened an account recently and am still unable to link my checking to fund it... have you found the account easy to manage?

[Anonymous]

I recommend Vanguard Federal Money Market Fund (VMFXX). Open a Vanguard brokerage account if you don't have one yet.

2.4%, which is exempt from state income taxes.

https://investor.vanguard.com/mutual-funds/profile/VMFXX

[Anonymous]

Mutual funds allow for relatively quick access and historically have a better return than money market accounts and CDs. Of course when the emergency happens, your money may not be worth as much as it used to be. If you anticipate emergencies happening then you probably want to stay away from a mutual fund.

If your emergency fund is 6 months of living expenses that you are only going to tap into if you lose your job, you can probably invest it into a mutual fund, withdraw it when you lose your job and then budget from there when you know exactly what you have.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Goldman Sachs Marcus Account. All online and 2.25, although their CDs are higher.

Np I opened an account recently and am still unable to link my checking to fund it... have you found the account easy to manage?

Yes, it’s easy although it truly is an emergency account because they don’t take check deposits online.

Did they not send you the two deposits?

[Anonymous]

Anonymous wrote:Got annual bonus and finally have some money leftover after paying off bills. We need to keep a chunk of it for an emergency fund. Where should we be putting this cash so that we earn some interest but would be able to access it quickly if needed?

I've heard that there are some online banks giving 2+% interest. Any recommendations?

Capital One 360 does 2% interest for money market over 10k I think. I've had them for years and will never change banks.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Got annual bonus and finally have some money leftover after paying off bills. We need to keep a chunk of it for an emergency fund. Where should we be putting this cash so that we earn some interest but would be able to access it quickly if needed?

I've heard that there are some online banks giving 2+% interest. Any recommendations?

Capital One 360 does 2% interest for money market over 10k I think. I've had them for years and will never change banks.

+1

And the app makes it super easy to deposit, transfer, and see all the pertinent account information at a glance.

[Anonymous]

Ally Savings

[Anonymous]

3 month or 6 month t-bills can be autorolled at the Fidelity. State tax free.

[Anonymous]

Anonymous wrote:Mutual funds allow for relatively quick access and historically have a better return than money market accounts and CDs. Of course when the emergency happens, your money may not be worth as much as it used to be. If you anticipate emergencies happening then you probably want to stay away from a mutual fund.

If your emergency fund is 6 months of living expenses that you are only going to tap into if you lose your job, you can probably invest it into a mutual fund, withdraw it when you lose your job and then budget from there when you know exactly what you have.

VMFXX is a federal money market fund. While not FDIC insured, it is 83% invested in US treasury bills and US government obligations and would not fluctuate in value even in another Great Recession.

[Anonymous]

Anonymous wrote:I recommend Vanguard Federal Money Market Fund (VMFXX). Open a Vanguard brokerage account if you don't have one yet.

2.4%, which is exempt from state income taxes.

https://investor.vanguard.com/mutual-funds/profile/VMFXX

Do this.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Got annual bonus and finally have some money leftover after paying off bills. We need to keep a chunk of it for an emergency fund. Where should we be putting this cash so that we earn some interest but would be able to access it quickly if needed?

I've heard that there are some online banks giving 2+% interest. Any recommendations?

Capital One 360 does 2% interest for money market over 10k I think. I've had them for years and will never change banks.

We just switched over from Suntrust to Capital One. Wish we had one it way back!!

[Anonymous]

Ally is super easy to use and has good interest rates. I also like to put some of our e-fund in i-bonds (currently pays 2.8% but rate adjusts every six months and money need to stay there at least a year)