Beyond keeping some cash on hand in a high-yielding MMA for irregular expenses or "minor emergencies," I think that CDs are a great place to keep a big chunk of your EF.
In the event of a real emergency, you can cash out your CD early. You will probably lose a big chunk (if not all) of the interest you have earned, but you will probably won't lose your principal. [Of course, read the fine print before opening a CD to be sure.]
There is a psychological barrier to cashing in the CD early, because you don't want to lose all of that lovely interest you have earned. It forces you to distinguish between a real emergency (death of sole income-earning spouse, long-term unemployment, major medical emergency, etc) and a simple urge to access the money (great sale at Macy's).
When I first started saving, I stuffed money away in CDs. I knew the money was there if I ever really, really needed it (which was a big help psychologically), but I knew it was a good idea to put it somewhere that was slightly hands-off. I still keep money in CDs. It's been over 20 years and I've yet to cash one in early.
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