I keep my emergency fund money just in my savings account at my bank, but I’ve been thinking about stashing it somewhere else. Savvy Sugar had a good article about the pros and cons of different ways to keep it. Read the original article here.
- Under the mattress. You always have access to this money, but the con is that you aren’t earning any interest on this. I don’t do this. I don’t like having cash on me because I am extremely paranoid about someone stealing from me. I’m crazy though.
- Checking account. Easy access but no interest.
- Money market account. A pro is that they carry higher interest rates than at your banks everyday account, but a con is that it might be a little more difficult to get quickly.
- Savings accounts. It is easy to transfer money from your bank’s checking account to your savings account, so it is easy to access and can gain a little interest. However, the interest rate is usually not too high.
Where/how do you keep your EF?
I have mine in a saving account with ING. I love it….I like that I can't get the money out as quick as I can with my bank savings account… 🙂 The mattress thing scares me because its easy to waste it and what if someone robs you!? No buneo.
ING all the way! The interest is low but higher compared to regular savings accts. I get paid $12-15 a month for interest=) I can't wait for the market to bounce back in however many years so I can get 5% or something…..IF EVER! If you need a referral let me know, we both get money if you sign up with my ING key:)
The Happy Homeowner says
I have HSBC for my EF, although I'm considering moving it to SmartyPig for a better interest rates and opportunities to earn extra bonus $$ when I meet certain goals.
Savings account for me!
ING here as well – love it!
I have some in an 18 month CD and more accessible money market. When I first took the plunge on saving I thought I would be dipping in a lot…turns out…I haven't at all. You just have to create a realistic budget and stick to it.
I'm on the ING bandwagon as well! We keep most of our emergency money there, both to get a higher interest rate and to keep it from being too easily accessible. We keep a little bit in a money market savings account with our main bank, which allows us to do an instant transfer if absolutely necessary.
Emily @ evolvingPF says
Just this month I moved our EF from a savings account at ING to a savings account at Ally. Super accessible since our primary checking account is also with Ally.
Little Lamb says
ING for me as well.
We keep it with local credit union that pays ok interest rate. Also opened smartypig account earlier this year to move funds over each month automatically for future downpayment for our dream house.
Out My window says
I keep the 1000.00 ef in a savings account so I can access it easily, anything else is in long term savings. Except we have $3000.00 worth of bonds in a fire proof safe, this would pay our bills for 2 months if we had a disaster. I want to get out of debt and build a 6 month ef. But not right now.
ING is very popular I see, I like that since that's where my EF is too!
Live Simply- Live We says
Money market acct. We have never had a problem accessing it,
I keep mine under the mattress of a savings account. I mean, my interest is usually no higher than .02 every other month. So yeah, I consider it a mattress. However, I need it to be quickly accessible, so I can't commit to different, better interest-yielding methods… yet.
Evidence of an Artis says
I automatically transfer $$$ to my credit union savings account each pay. It is not connected to my checking account, so I need to think hard about a withdrawal. I have been looking into Smarty Pig and ING!
Melissa Wilson says
I keep $2,500 of my emergency fund in my chequing account, because that allows me to maintain a minimum balance in the account, which means that I don't have to pay any bank fees. Heck yes! The rest I keep in a high-interest savings account. It earns me a wicked 1.25% (that's good…right?), but the benefit is that it's super easy to access.
Michelle P says
Obviously I need ING!
Fash Boulevard says
mine is all in the bank, but I've also recently been thinking of more creative options. I liked how the guy in 21 hid it in the ceiling. Unfortunately in order for me to do that I'd need some serious heavy duty drills. lol. thanks for sharing, love. If you get a second I'd love to hear what you think of my latest outfit. I shot it in front of Dee's house from Clueless. I'm sorta obsessed. lol. x ohttp://fashboulevard.blogspot.com/
AMD @ A Mom's D says
ING in a savings TFSA-I figure I might as well not be taxed on having my emergency fund sit there. I just have it in a savings account (vs anything more complicated) so that it still remains pretty liquid in case I need it.I guess the only emergency I wouldn't be covered for is if the world suddenly lost internet access/electronic access! It would probably be smart if I kept a couple hundred bucks cash at home too in case of a short term emergency.
I'm surprised that nobody keeps at least a small amount at home… or somewhere very easily accessible. What if for some reason you can't get it from your bank, or you don't have time to wait for it to switch accounts so you can withdraw it? Then you're screwed… I think it's best to have the bulk of it in a bank account but a small chunk somewhere that you can "grab & go" as well! This Coud just be me though… lol!
Carrie Smith says
I like to keep 2 emergency funds. A mini fund in my checking account so I keep a minimum daily balance so I get 2% cash back on all my purchases. Then I keep a bigger emergency fund in an ING savings account. The interest rate sucks right now, but that's not what I'm focus on. If I wanted to make money with my savings account, I'd be investing. My emergency funds are for saving me money on future disasters, and to keep from using high interest loans/credit cards.EF are for savings, not making money. And that's okay with me.
keeping money under the mattress is so old school. But most people still do it today as an act of this ration of not having it in their bank accounts, just in case the ‘suspected Russians’ allegedly have the ability to tap into a person’s bank account and illegally cite foreign funds.