Re: Question About Emergency Fund
Broken Arrow - you're right about current interest rates between MMAs & CDs being somewhat equal - for the present. However, at any given moment in time we are gambling so to speak on where those interest rates are headed. You can lock in some rate that today seems great Marvelous FANTASTIC only to have it be yesterday's news and looking mighty weak next week. Inversely you could assume that these rates are low and hoping for higher decide to hold cash instead only to see those NOW great looking rates evaporate overnight and you'll wish you'd stuck some portion of your holdings into them.
At each moment in time we have to decide whether to hold our cards or play them.
BA - I know you KNOW this - just discussing it for others who might forget the 'timing risks' involved in money management. I forget it at times myself! Ha!!
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