Best place for the ol' Emergency Fund

[slimcustomer]

Re: Best place for the ol' Emergency Fund

I like I bonds. The availability of tax deferral makes tax time a breeze and the possible tax free use of them for a child's education is a bonus. Buying them regularly in your 30's will provide an inflation protected steady stream of income later on, providing you don't cash them in early.

[BAGAGT1]

Re: Best place for the ol' Emergency Fund

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).

[cbmeeks]

Re: Best place for the ol' Emergency Fund

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. :-)

[Bluezy]

Re: Best place for the ol' Emergency Fund

I keep the Emergency funds in three places - one portion in a high interest savings with RateEdge,com, another portion in a high interest CD (GTE CU) and the rest in a brick-and-mortar checking account (Bank of Tampa) keeping a higher balance. It seems to be working smoothly.

The bank I've chosen has very fast transfers with the credit unions (and vice versa) and all transactions appear instantly online when they occur.

[JoyJoy]

Re: Best place for the ol' Emergency Fund

We keep our EF in HSBC as we're fortunate to have a branch within a mile of our home. We can withdraw/deposit only by using our ATM card. I have a small savings with my credit union which is linked to my Emigrant Direct account. Transfers can take up to 2-4 days states ED. I have never withdrawn from the ED account as I am trying to go for a 5 year savings plan @$100.00 a month and see what we end up with. So far so good lol. Just started this in Jan., 2006.

[Writer@Large]

Re: Best place for the ol' Emergency Fund

Thanks for all the great responses so far. I'm processing the info now ...

--W@L

[joseblanco]

Re: Best place for the ol' Emergency Fund

presidential.com has a 4.87 apy for savings & 4.5 apy for checking (minimums 5k & 1.5k respectively) This way transfers immediately occur b/t your savings to your checking. I see you said you only have 1k so I'd say go w/ GMAC bank has 4.8 apy (500 minimum) for now which permits drafts. Once you build your emergency fund up to 3-6 months then switch to presidential

[Ima saver]

Re: Best place for the ol' Emergency Fund

cbmeeks, I did not mean to ignore your question, I just saw it. Yes, it was earning about $650 a month and I just let the interest accrue. However, I am building a spec house (for sale) with that money rather than get a loan at the bank.
If i were not using the money, I might try one of these online banks. Maybe when i sell the house, I will move it somewhere to get more interest!

[jmjj215]

Re: Best place for the ol' Emergency Fund

presidential.com has a 4.87 apy for savings & 4.5 apy for checking (minimums 5k & 1.5k respectively) This way transfers immediately occur b/t your savings to your checking. I see you said you only have 1k so I'd say go w/ GMAC bank has 4.8 apy (500 minimum) for now which permits drafts. Once you build your emergency fund up to 3-6 months then switch to presidential

Does the presidential checking require you set up direct deposit?

[joseblanco]

Re: Best place for the ol' Emergency Fund

Yes, they require a minimum monthly deposit of 200 USD per month but for the checking only. No direct deposit requirement for the savings.

[WellManicuredMan]

Re: Best place for the ol' Emergency Fund

presidential.com has a 4.87 apy for savings & 4.5 apy for checking (minimums 5k & 1.5k respectively) This way transfers immediately occur b/t your savings to your checking. I see you said you only have 1k so I'd say go w/ GMAC bank has 4.8 apy (500 minimum) for now which permits drafts. Once you build your emergency fund up to 3-6 months then switch to presidential

Not that this will probably affect many people but just thought I'd point it out...Presidential pays 4.87% up to $35,000 and after that it drops to 3.00% whereas other banks don't have a restriction like this.

[Writer@Large]

Re: Best place for the ol' Emergency Fund

I see you said you only have 1k so I'd say go w/ GMAC bank has 4.8 apy (500 minimum) for now which permits drafts.

A $500 minimum doesn't work for me right now. With only $1000, I need it all accessible! But in the long term, I will definitely be looking for a better plan ...

--W@L

[nanamom]

Re: Best place for the ol' Emergency Fund

Our EF is still very small. We keep it in a separate checking account that only I carry a debit card for. It is never touched. I am very good at ignoring the fact that it is there. We are determined to only use it for emergencies. I hope to build it up to the equivalent of one paycheck. Then I will start building towards the 3 to 6 month that is rec by so many people. We plan to keep that in what ever we can find that will pay a decent rate of interest but be available in a few days. I figure with one paycheck available at a moments notice we should be able to wait for the rest for several days. I add to the fund every month so in 8 months I will be able to start looking for the next option.