Quote:
Originally Posted by Reldon
I believe it is better than keeping the money in a Checking Account making 0% interest. This is an emergency fund so you might need the money shortly. If that's the case, a MMA or CD is the best place to put the money in.
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WELLLL....
I agree with speed and liquidity, but I don't see why you can't make some interest off of it either.
My credit card is my short term emergency fund. It's also quick and I usually have more than enough time to transfer my money from a savings or MMA and have it paid off online. (I'm currently using a 5% checking, but that's beside the point.)
However, I also don't carry a balance, and I never charge more than I have in my bank account. So, this method may not be perfect for everyone.
There are other kinds of emergencies, such as natural disasters, where cash is probably the way to go.... But for everything else, there's MasterCard.
