Where to keep emergency fund

Let's say I have a 20k emergency fund

Where should I keep it that's reasonably liquid and very safe from loss, but also will get me more than a pitiful 1% interest like a savings account?

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What's your combined credit limit on your cards?

>1975839
7k

Memehood account and just put it in a safe stock like Amazon, that will be 5% plus tip for the advice

Most liquid would be a savings account. If you want funds available maybe an investment account with only in bonds and have a debit card? I know some brokerages have debit cards but if you want cash you'll still have to wait the couple day delays or do a cash advance off of the card.

What are your monthly living expenses? For what sort of emergency exactly are you saving this money?

up your ass.

Buy lots of bitcoin and ethereum.

$2.5k/month expenses with $5k/month cash income

Emergency savings in case I lose my job or something and have to move to another expensive location to find another job

OK, here's the deal. You can easily cover one month's worth of living expenses on your credit cars. You use the float to pull your emergency funds out of an account, AS YOU NEED IT EACH MONTH, you pay zero interest on the charges.

So it doesn't matter where you put it as long as you could reasonably get it out within one month. This means virtually any brokerage account, BUT you need to invest in items that are less volatile.

However, as you have $20k you also need to seriously consider the "other" sort of emergency fund, the sort you need when the ATMs don't work and USD is toilet paper. This would be something you keep in your personal domicile, under your watch. Don't worry, you'll know when you need it.

In order of liquidity/return (inverse):

* checking account
* savings account
* money market account
* money market fund/ETF
* ultra short-term bond fund/ETF
* limited-term bond fund/ETF
* short-term bond fund/ETF
* cd ladder

Any option more volatile -- including ANY equity or equity fund -- is completely unsuited for an emergency fund. If you're smart enough to establish a reasonable emergency fund you probably already know this, but if it needs explaining let me know.

>the "other" sort of emergency fund
Tin-foil retards should be ignored.

>Emergency savings in case I lose my job or something and have to move to another expensive location to find another job
I don't get how people do this. I've been actively looking for work since December. Only now am I near a point of maybe landing a job after 3 interviews and reference checks - one which I applied for on Chirstmas Eve. Almost 5 months and still no payday. I imagine if I'm offered a job in the next week or so, the on-boarding and start date will push it back another 2-3 weeks... so at best it's been 6+ months waiting for a payday. With family and rent, car, food etc. $20k would be almost gone

Your emergency fund should grow or shrink depending on the field you're working in and your seniority. If you're a minimum wage cashier, you can expect to find a new job in 1-3 months. If you're a CEO of a Fortune 1000 company, that next position might take 3 years to land.

You're a great example of why "normal" working people need at least 6 months in their emergency fund. Even if things go well, a lost job is a major interuption to your income.

>And we haven't even talked about losing your income due to illness or disability -- of yourself or someone you need to care for -- which does not discriminate between rich or poor.

>* savings account
>* money market account

since the highest I see for either is 1.xx% apy, what would be the difference or benefits of one over the other?

>what would be the difference or benefits of one over the other?
To be pedantic, a money market account is invested by your bank in short-term zero-risk U.S. treasuries (bonds), whereas a savings account is simply backed by the reserves of the bank. In time when interest rates are a bit higher, a money market account will usually beat a savings account by a small percentage. However, rates are low enough these days that the difference gets compressed down to zero.

All things being equal, go with the money market account over the savings account. It's no additional risk, and when the interest rate environment changes in the future, you'll already be in the better account.

sounds good, thanks

if you're not satisfied with the interest make your emergency fund smaller and invest what you took out in whatever, but don't call that removed money emergency fund

emergency funds dont need return

$20k emergency fund is ridiculous. Its going to drag on your net worth growth. Drop it to five and ask for a credit limit increase on your credit card.

Don't keep it in a savings account. That's for super high inhibition normies.

How about a fund for down payment. I have 20k in savings as emergency. And 40k in money market which I intend to grow for a down payment.

If the markets go to shit and its tied up in worthless stocks that would prevent me from buying during the best possible time. But it is way too much to keep in cash.

Inb4 cryptos

If it's truly emercency and it needs to be accessible within minutes, keep it as liquid as possible and don't care about the yield.

I know people that lost thousands of € because they put money in a bank account in some shit hole eastern european country for that extra 0.4% yield.

More money has been lost reaching for yield than at the point of a gun.

Am 24, have 30k in my checking account, 0 in savings, 30k college debt, should I just invest like 15k in stocks or what

Buy 0 shitcoins and kys cuckfag coiner

I would put it into rolls of quarters. Sure it is less than the 1% gains but its liquid af. And u wont want to spend it this way. Even tho u can.

Here's a real answer OP.

Put some of it in a high yield savings account (1.1% minimum, you can find these online), and the rest in a money market mutual fund (not a money market account) which guarantees your principle and 1-3% returns per year with full liquidity like a checking account.

>most liquid would be a savings
Incorrect.

Read:
investopedia.com/articles/mutualfund/07/money_market_savings.asp

is schwab good

>How about a fund for down payment.
A good question, although the answer is pretty similar. If you're hoping to use the down payment fund within the next 2-3 years, that's still too short to put the money into any for of stock/equity investment and be confident that the money will be there when its time to buy your house. At most, you might consider looking at intermediate-term bonds.

However, understand that the longer your bond duration, the more sensitive the investment is to interest rate changes. Its very likely that rates are going up in the near future, and that would put downward price pressure on your bond investment. Intermediate bonds are still a pretty safe bet, but there's certainly a chance that your account could drop a small amount in a worst case scenario. Whether that risk is worth the extra few basis points of return over a short-term bond fund is up to you.

>Incorrect
Actually he's correct. A savings account is more liquid than a money market fund. From the day you sell it, its going to take 2-5 business days to get the proceeds of a money market fund into your retail accounts and available for spending. By contrast, you can get direct access to your savings account with an ATM card, and withdraw the whole balance on any day that the bank is open.

It's not a huge difference for the purposes we're discussing in this thread, but still you shouldn't tell someone they're wrong when they're not.

>it needs to be accessible within minutes
That's not what an emergency fund means. We're not talking about "bug out" money, or the few thousand in cash you keep in your sock drawer for "situations." This is money intended to replace your job income in case of lost employment, illness, or other adverse life events. This is the money that keeps food on your table, keeps the lights on, and prevents foreclosure/eviction.

>is schwab good
At what?

...

>You're a great example of why "normal" working people need at least 6 months in their emergency fund.
I'd agree to that.

Thankfully I have a constant source of income working remotely, but it's lonely, boring, not full-time and I want a better job on paper so I can be a big boy.

>33 y/o and never worked 9-5
>Parents look at me with helplessness
>Siblings look down on me like I'm unemployed scum

TFW earn $80,000 - $120,000 per year working online yet people treat me like filth because I don't dress well and can wander around malls aimlessly at midday if I damn well please. I don't think people believe I have a job and I think they feel sorry for me.

>Wife thinks I'm broke
>Family friends think I'm broke

Bought a $400,000 house for cash. People think I struggle to pay rent for it. Don't bother clarifying their assumptions because who cares.

>I just want a secure 9-5 job for a few years to feel the feels of wagecuckery

I'm sure you're asked this a lot but now I'm curious.

Do you run your own site/company or do you work remotely for someone else?

I'm an adjunct clinical professor at 3 colleges.

Pay is between $55p/h and $140p/h depending on things.

Once you're in with faculty in 1 college, professors come and go and bring your name with them. Stumbled into some resourceful people by sheer fluke.

>Who would have thought the blind lady having trouble ordering food coz no one would read her the menu would turn out to be a professor who remembers good people.

That's actually pretty awesome. What do you teach?
I had a chem professor who did that with a few local colleges years back.

Just buy PM's?

I have 25k in a hgh interest savings account in a bank I can't get to.
I have a no fee, low limit, cashback credit card with the same bank that stays in the safe at work - if I need the cash I can use the card and transfer the balance in full right to the card.

If I feel I don't need that much in reserve after a year I will transfer 10-15k back into my usual accounts and utilize it.

>triple digit P/E
>"Safe"

Retard detected.

Crypto Bullion

It really depends on the big picture.

For emergency funds you're really limited to CD ladders, TIPS, high-yield savings account. Which are all around 1%.

Is this actually an emergency fund or is this your life savings?

Assuming you have other investments above and beyond the 20k, I personally would open a brokerage account at interactive brokers.

Invest everything boglehead style and in the event of a layoff take a margin loan at 1.65%. Worst case scenario you have to liquidate some of your holdings. No big deal.

You can also keep a few grand around in cash for smaller emergencies.

This isn't my life savings it's just my emergency funds

My life savings is in various low fee mutual funds and a target date fund

doesn't interactive brokers punish accounts under 100k with big fees?

>Tin-foil retards should be ignored.

Your loss.