Posted: 3/14/2009 2:01:16 PM EDT
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What kind of account do you keep your emergency fund in?
I talked to my bank customer service lady about a new atm card when she pitched me on a CD where you have access to the funds one time without penalty. What do you all recommend ? |
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If the purpose of the fund is to provide money in case of emergency, the best thing to do is have physical cash in your possession. If you have a custodian(like a bank) keep it for you, you may not be able to gain access when you need it. Putting it in a time deposit like a CD places yet another obstacle between you and your money. If you absolutely have to keep it in the bank, keep it in a demand deposit account, like checking.
Think of it this way: if you ever have an emergency in which a firearm would be useful, it would be best to have an actual firearm within reach, ready to use. If you have to go to the firearm bank(your safe), you might retrieve your firearm in time for it to be useful during the emergency, or your might not. If instead of a firearm, your emergency plan consists of a coupon promising a free gun rental at the nearest range, well, good luck buddy. |
| Check your small local banks. There are two banks around here that are offering extremely high interest checking accounts. One is as high as 4.5%. Tell me where else you can get a guaranteed 4.5% rate and allows you to have instant access to your money. You do have to use a debit card ten times each month. I use the card for my very small purchases and can normally get my 10 purchases in for under $30. To keep that from cutting into your interest, just deposit an extra $30 to 40 each month. I would only recommend using this if you have self control and wont use that debit card to deplete your savings. To combat inflation and get a little appreciation, I think this is a great option. |