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where do you guys keep your '6 mos. living expenses' funds?

B

BlahBlahYouToo

Lifer
i actually have closer to 9 months because of the severity of this recession, which means it's no small amount.

currently it's in an online savings account , and it barely gets me $40 a month in interest. i think the interest is something retardedly low like 1%, barely keeping up with inflation.
 
5 year CDs from Ally @ 2.4% APR. Buy multiple CDs so if you need money early, you only get penalized on a portion of your savings.

And the best part - the early withdrawal penalty is only 60 days worth of interest, so even if you had to cash in all the CDs after only 6 months, you'd still be ahead.
 
3% checking account.

If you're getting $40/mo interest at 1%, you have $48,000. Seems a little high for 9 months expenses.

I have about $13k which is fairly close to 6 months expenses. Just investing my savings in the market now.
 
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rcpratt said:
3% checking account.

If you're getting $40/mo interest at 1%, you have $48,000. Seems a little high for 9 months expenses.

I have about $13k which is fairly close to 6 months expenses. Just invested my savings now.
Click to expand...

i have a unique living situation.
currently renting a place, and renting out my other 2 properties, all near nyc metro.

preparing for a worst case scenario which means my tenants and i all lose our jobs.
 
Vanguard Prime Portfolio money market.

Yield may not be as high as you can get elsewhere, but it is a safe investment, and it is liquid (CD is not liquid because of early withdrawal fees).



edit: yield is only 0.07% 🙁
 
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I keep it in my savings account with Wells. I make dickall on interest, but at least it's easy to access/move and I can write checks or pull it from an ATM easily and at any hour of the day.
 
Keep it somewhere where you can get to it easily and quickly if need. That is, not a CD or most other investments. The point of a emergency fund is to reduce your risk if an emergency comes up, it isn't there to make you money. So slap it in whatever savings/checking/money market account that earns a at least some interest, will not go down in value, and does not have any penalties/difficulties with getting access to it.

If you look around there are a number of checking accounts (often times at credit unions) that offer 3-4%, that's probably your best bet.
 
savings account with discover ... used to have the old 4.5% return etrade account, but they moved everything to discover....which is barely 1.5%
 
I keep my chump change in my pocket :biggrin:
just kiddn, just kiddin...

Regular savings account, ones that pay some embarrassingly low interest...
 
currently i have about 4 months expenses if i were to suddenly be making NO money ever, but that's unlikely since I'm self-employed. but just an interest earning checking account.
 
in our crappy 1% hsbcdirect and ingdirect accounts... but it'll ALL be gone soon because of the dormer. Taking a risk for a small while, but we're close with family and they can always help out if the fit hits the shan.
 
Ehh, I've got about 3 months expenses in the stock market right now and then another 1 month worth in checking and 1 month worth in savings, otherwise, everything else is "no touch" until retirement.
 
In a regular saving account at 1.25% interest (started at 4% 6 years ago, was 0.75% last year)

Because I am just getting settling into my life at 24 after a rough period of graduating in the middle of the recession, I have more into this account than I need, and just now looking into where/how to invest it long term... Lots of reading to do as i'm learning it from scratch!
 
A regular savings account that gets me in the neighborhood of 1%. I hate these ultra low rates because they don't encourage saving.
 
Money-market mutual fund. The yield used to be decent but has been terrible over the past couple years. I've looked into switching it over to CDs (or at least splitting it up, part in CDs and part staying more liquid), but haven't done it yet.
 
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