Best place for the ol' Emergency Fund

**lillyb** · 05-31-2006, 05:46 AM

Re: Best place for the ol' Emergency Fund

Where are you keeping your emergency fund? ING. Well, I'm keeping $500 in ING and $500 in the checking account. I want to be able to get to some fast if needed, but didn't want all of my $1000 that easy to get to. Too many family with life crisis looking for handouts.

Do you have quick access to your funds? To the checking, yes. ING may take a few days, which is the way I like it.

Does your institution/account have a withdrawl fee, transaction fee, etc.? Nope.

Do you have to keep a minimum balance there? Nope.

**Broken Arrow** · 05-31-2006, 05:57 AM

Re: Best place for the ol' Emergency Fund

I am tempted to keep mine in a high-interest online account, but for now, it's doing just fine in my credit union. Transfers are quick and easy, with no fees and very, very few restrictions.

**parafly** · 05-31-2006, 05:57 AM

Re: Best place for the ol' Emergency Fund

I have an HSBC online savings account. It links directly to your checking account, but the transfers take a couple of days. If your funds are needed immediately, you can use the ATM card provided with the account. There are no fees and no minimum balance requirements. You can open an account with $1.

BTW, they have much better rates than ING.

**cbmeeks** · 05-31-2006, 06:39 AM

Re: Best place for the ol' Emergency Fund

Well, if you have $1000 saved, I am assuming you are on DR's plan?

If that's the case, DR recommends keeping that $1000 in a place that is easily accessable but not so easy that you will be tempted to use it for non-emergencies. He also recommends not using the money for investing....it's for emergencies.

However, I don't see how putting it into a higher interest earning account could hurt as long as you can easily (withing a day) access the money and no big penalities for taking money out.

**boefixepa** · 05-31-2006, 06:57 AM

Re: Best place for the ol' Emergency Fund

Also just a note....and I now those anti-cc people out there will role their eyes....but if you need the money this instant and it's in the online saving that gets a decent rate charge it, get the cash back reward, transfer the money before the bill's due and pay it off.

1. You have the CC with you generally - at least I do
2. You get another month of interest from the online place
3. You get the rewards or points
4. You don't have to stress...

At least I don't...That's what I do....so far no big emergency...but I do keep at least 2.5K in my checking so if I needed cash for some odd reason it's there....but I never carry cash.

**CJsoccerchic** · 05-31-2006, 07:00 AM

Re: Best place for the ol' Emergency Fund

I didn't know that HSBC lets you get your online money thru a bank card....

**cbmeeks** · 05-31-2006, 07:07 AM

Re: Best place for the ol' Emergency Fund

Originally posted by boefixepa

....and I now those anti-cc people out there will role their eyes....

**fultron** · 05-31-2006, 07:21 AM

Re: Best place for the ol' Emergency Fund

Our emergency money is in a money market acct. It gets a better rate than a regular savings or checking account and is easily accessible.

**sweeps** · 05-31-2006, 07:23 AM

Re: Best place for the ol' Emergency Fund

This is off-topic, but is $1000 really enough for an emergency fund? I know this is one of Dave Ramsey's preachings, but for me $1000 wouldn't get my family through 1 month of hard times, let alone 3 to 6.

By the way, my EF money is split between HSBC and GMAC.

**cbmeeks** · 05-31-2006, 07:31 AM

Re: Best place for the ol' Emergency Fund

Originally posted by Sweepsplayer

This is off-topic, but is $1000 really enough for an emergency fund? I know this is one of Dave Ramsey's preachings, but for me $1000 wouldn't get my family through 1 month of hard times, let alone 3 to 6.

By the way, my EF money is split between HSBC and GMAC.

The $1000 is for most small emergencies. DR suggest starting with that amount because the average house needs $10k to $20k for 3-6 months and it would be difficult to save $20k while you are paying on CC's.

We just had a small emergency. Not a big one. We have to fix the gas sensor in our van. $600 bucks. I could use the emergency fund for that but we are going to try and just raise the cash since it's not critical (my wife can record mileage instead of using the gas-guage.)

So, $1000 will cover most small emergencies. It's a temp thing.

cbmeeks

**sakigt** · 05-31-2006, 08:11 AM

Re: Best place for the ol' Emergency Fund

Once I build my fund back up (Im halfway there!) Ill be keeping it in my ING account. It takes a couple days to get so I can thinka about what Im spending the money on.

**jmjj215** · 05-31-2006, 08:13 AM

Re: Best place for the ol' Emergency Fund

I live on last month's income which simulates Dave's approach, though it's even more conservative than just having $1000. So that's my first line of defense against emergencies. The second is my 3-6 months' expenses sitting in ING.

**Ima saver** · 05-31-2006, 08:25 AM

Re: Best place for the ol' Emergency Fund

Well, I started the first of the year with 100k in a local savings account paying over 4%. I also had 200K in another bank, this time in a money market account paying 3.9% I can get to my money 6 days a week, and I can always use the credit card if I need to pay something even quicker and then just pay it off. I have a $19,000 credit limit on one card, that should cover almost anything!

**cbmeeks** · 05-31-2006, 10:13 AM

Re: Best place for the ol' Emergency Fund

Originally posted by Ima saver

I also had 200K in another bank, this time in a money market account paying 3.9%

Am I correct in assuming that is generating about $650/month for you for basically doing nothing?

Pretty sweet.

Do you put the interest back into the account or somewhere else?

Sorry to be so personal but if you are sharing wealth then I will ask...hehehe

thanks

cbmeeks

Best place for the ol' Emergency Fund