Quote:
Originally Posted by jIM_Ohio
If you have an emergency, you have 4k coming available with 30 days.
In any given month once all 6 CDs are in place, you have about a 20 day window any month without access to the money. How many emergencies require immediate access to money? Even most hospitals take longer than 21 days to bill you.
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I'd personally be uncomfortable having all of my cash tied up in CDs although I wouldn't have a problem because I could charge an unexpected bill on a credit card and a CD would mature by the time the bill was due. I wouldn't recommend that system for everyone, though.
I would rather see someone like the OP keep a portion of the EF in a liquid account (checking or money market). So in this example, maybe $3,000 in a money market and $3,500 in each CD rather than $4,000 in each CD and nothing at all liquid.