[Fern]

You can do any of the things you mentioned above with it. Mutual funds might not be the best choice since, altho they are liquid, you might be forced to sell at the wrong time if you needed quick access to that cash. Having said that, i keep my 'emergency $' in domestic stock funds only becus i know the only reason i'd need that $ is 1. to buy a new car, which i can plan ahead for or 2. in case i lose my job.

ladderings not a bad idea if you have the time to keep watching them when they get ready to roll over, tho last time i checked, CD rates were pretty bland.

Maybe it'd be best to first identify in what scenarios you might end up using your emergency stash, then shape an investment plan around that?