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.

Anonymous wrote:I keep in my 5% savings account.

What? Where do you get five percent?

I keep in my 5% savings account.

ING direct account. Makes pennies each month but it's there if we need it. That's the point!

Anonymous wrote: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.

What if the fund goes down in value?

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.

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.

I can hang on to it for you.

Anything FDIC insured.

Bricks of cocaine are always going up in price and a pretty liquid commodity.

Do a search here - there are lots of posts with this same question.

How about a Roth? You can remove your principle $ at any time without penalty.

We keep ours in GE high interest savings account so it is very accessible.

Wondering whether it's best to keep "emergency savings" in a savings account, CD, money market, something else? What do others do? TIA