Emergency fund, where should you put it?

[Mailer]

I'm discontented with the interest rates I'm getting from the bank savings account. The emergency fund is going be sitting there for a long period. It should be working a lot harder while I'm waiting for the loads.

I'm looking for ideas and opinions where I can get better return and access it with ease if an emergency does arises. Thanks

 

[OntarioVanMan]

I'm discontented with the interest rates I'm getting from the bank savings account. The emergency fund is going be sitting there for a long period. It should be working a lot harder while I'm waiting for the loads.

I'm looking for ideas and opinions where I can get better return and access it with ease if an emergency does arises. Thanks

loan sharking?.....LOL

I don't think there is that what you want or need....certificates and CD's usually require a time commitment or be penalized....

Really your best bet is to pay off any charge cards outstanding IF you have any and save a ton of interest charges right there .....I keep an empty charge card that I can use immediately....and a stash under my pillow....

 

[RoadTime]

I'm discontented with the interest rates I'm getting from the bank savings account. The emergency fund is going be sitting there for a long period. It should be working a lot harder while I'm waiting for the loads.

I'm looking for ideas and opinions where I can get better return and access it with ease if an emergency does arises. Thanks

Most bank interest rates are a joke, even with high balance CD's etc that tie up your money. I would look for on-line High Yield Savings Accounts. The one I currently use is with American Express. No Fee's, No Minimum, pretty easy access to funds, may take 2-3 days for transfer to be completed. Earns 0.85% Compared to the best rates at my bank PNC they can't touch this rate without a huge amount of cash and locking up my money.

 

[zorry]

That's $425 per year on a $5000 balance.
The earlier advice of paying down debt asap looks good to me.
Also use cash to get discounts. Like paying insurance and such a year at a time.
Buying anything large. Ask for a cash discount. All they can say is no.

 

[OntarioVanMan]

That's $425 per year on a $5000 balance.
The earlier advice of paying down debt asap looks good to me.
Also use cash to get discounts. Like paying insurance and such a year at a time.
Buying anything large. Ask for a cash discount. All they can say is no.

just a minor detail...that $425 is taxable

 

[Treadmill]

I have my settlement check direct deposited to my business checking account and just build it from there. I use a debit/credit card for all of my transactions. Makes it easy to do all business transactions and I can transfer monies from other accounts if I don't have enough to cover any repairs and the like and at the end of the month because I can match all of my receipts with the statements.

 

[TeamCaffee]

I have two emergency funds one that is a smaller amount and is available for quick cash is in https://www.emigrantdirect.com/EmigrantDirectWeb/index.jsp and then I keep the larger amount in an account on https://individual.troweprice.com/p...lacementGUID=50A47EBFC7FF46F68811CB0B76288226

With both accounts I am easily able to transfer money as these are on line accounts from our bank.

 

[geo]

i have a seprate bank account with a year in if i need it
and add to it every week
make it like a bill

also you should have a ira i have one of those too

 

[usafk9]

There are a few credit unions in Michigan that pay 3-4% on relatively small balances ($1k?). I'd be willing to bet those are available where you live, too. These are regular checking accounts. Hope it helps.

 

[usafk9]

just a minor detail...that $425 is taxable

I'd rather pay tax on that $425 gain, than owe nothing on nothing.

Just got done with our business and personal taxes yesterday (and yes, I used Turbotax for both). Even with paying ourselves as employees, paying in our quarterly withholding, plus our quarterly estimates, we way underpaid. While sending in two large tax checks sucks out loud, it means we made the most money we ever have. We can live with that.

 

[zorry]

My point is almost any credit you have is costing you more than the interest you can earn.
Cash on the barrelhead should be good for a 5-10% discount with some vendors. ( unless I'm way out of touch).

 

[Tennesseahawk]

I suggest gold and silver coins and charms, about 3000 rounds of ammo, and lotsa rice and such. Stay away from US money.

Oh... that wasn't... umm... nevermind.

 

[Mailer]

Just completed another drop and finally got chance to review the responses. Thanks!

The money saving strategies mentioned here can certainly add extra dollars to the emergency fund, for sure. Some are better than the others. But in all, they are all good ideas.

The high yield savings account and the credit union rates sure beat the traditional bank. They are worth looking into if there no other safer options as far as where to park the emergency fund.

A bag of rice and gold coins? Lol. I'm going to wait a bit here to see more ideas.

 

[RoadTime]

Looks like I will switching high yield savings accounts soon. As long as they are FDIC insured I'm loyal only to the rates

CIT Bank Savings 0.90% up to 25k, then 0.95% min. $100 to start.
https://www.bankoncit.com/product-savings.htm

I searched for credit union rates. Could only find .03-.04% with non-CD savings accounts. Still better then bank rates, but with the goal to have access and a better rate to the emergency fund, that limits the options.

---usafk9, Do you know the names or have links to the credit unions you mentioned that have regular checking accounts paying 3-4% ? Thanks

 

[Mailer]

I have two emergency funds one that is a smaller amount and is available for quick cash is in https://www.emigrantdirect.com/EmigrantDirectWeb/index.jsp and then I keep the larger amount in an account on https://individual.troweprice.com/p...lacementGUID=50A47EBFC7FF46F68811CB0B76288226

With both accounts I am easily able to transfer money as these are on line accounts from our bank.

On your individual acct, what is the APY rate, is it in money market fund?

 

[Mailer]

Most bank interest rates are a joke, even with high balance CD's etc that tie up your money. I would look for on-line High Yield Savings Accounts. The one I currently use is with American Express. No Fee's, No Minimum, pretty easy access to funds, may take 2-3 days for transfer to be completed. Earns 0.85% Compared to the best rates at my bank PNC they can't touch this rate without a huge amount of cash and locking up my money.

I checked it out, good APY and good features.

 

[Mailer]

i have a seprate bank account with a year in if i need it
and add to it every week
make it like a bill

also you should have a ira i have one of those too

I have them, Roth, TIra and Keogh.

 

[Mailer]

There are a few credit unions in Michigan that pay 3-4% on relatively small balances ($1k?). I'd be willing to bet those are available where you live, too. These are regular checking accounts. Hope it helps.

3% Its true, saw it. Won't be able to meet their requirements. I hope the 3% is not a rate teaser.

 

[Mailer]

I have two emergency funds one that is a smaller amount and is available for quick cash is in https://www.emigrantdirect.com/EmigrantDirectWeb/index.jsp and then I keep the larger amount in an account on https://individual.troweprice.com/p...lacementGUID=50A47EBFC7FF46F68811CB0B76288226

With both accounts I am easily able to transfer money as these are on line accounts from our bank.

On your individual acct, what is the APY rate, is it in money market fund?

 

[seekerman]

That's $425 per year on a $5000 balance.
The earlier advice of paying down debt asap looks good to me.
Also use cash to get discounts. Like paying insurance and such a year at a time.
Buying anything large. Ask for a cash discount. All they can say is no.

I'm sorry......I'm not a numbers guy. Can you tell me how 0.85% on $5,000 equates to $425.00 a year?