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Old 06-01-2006, 07:48 AM
cbmeeks cbmeeks is offline
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Default Re: Best place for the ol' Emergency Fund

Quote:
Originally Posted by BAGAGT1
Where are you keeping your emergency fund? I keep one third of my EF in a Credit Union account. I keep a 2/3 in a Six month CD, I keep the last third in a one year CD.

Do you have quick access to your funds? Yes to the credit union, no to the others.

Does your institution/account have a withdrawl fee, transaction fee, etc.?
No withdrawal fee for the credit union, I would get hit with an early withdrawal fee for the CD's.

Do you have to keep a minimum balance there? Yes, $5 for the credit union, and 10K a piece for the CD's (to qualify for the best rate).

I think you are on to something. That is what I am going to do (basically).

I am going to keep $1000 (or more) into a normal savings account that is linked to my checking account. I can get the money instantly, 24/7 and I don't have any fees if I only do it 4 times a year (the fee isn't that much either). Then, I will keep more into a 4.25% savings online and maybe some into a 5.25% CD for a year.

That way, I will have a good EF and still make a little interest without violating DR's rules too much. :-)
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