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Need ideas- where to park emergency funds

October 24th, 2013 at 06:59 am

Hi all,

I so like this site!!

K I am working on my emergency funds. Also thought I should start a Christmas fund and other funds (working out what I need to save for.. vacation sounds like a good fund to have) but I do not want to put them in the bank at 0% (especially the emergency funds which are larger and more long term). Any thoughts on where to park them for 'some interest' but still fairly accessible?

and love the autowithdrawal to savings ideas that some of you have.

6 Responses to “Need ideas- where to park emergency funds”

  1. momcents Says:


    I bank at PNC and am a big enthusiast of the Virtual Wallet. The Reserve Fund is where I keep my "short-term EF fund" (meaning I know that I'll be parting with these funds in the next 3-6 months). Not sure if other banks offer that three account banking/savings package.

  2. CB in the City Says:

    I have a small emergency fund at my bank -- I try to keep it at $2,000, though it is low right now. The interest is .01%. My bigger fund, which I try to keep at $20,000 is in a credit union savings account which pays .07%. I don't know where you can get a higher rate AND accessibility these days. I'll be interested to see what others say.

  3. Rachael777 Says:

    I am thinking of using Barclays.. .90 rate.. no minimum balance.. up to 6 withdrawals a month and no fees. Here is the link for those interested..https://www.banking.barclaysus.com/index.html

  4. MonkeyMama Says:

    Ally & Capital One.

    Ally is only 0.84% right now, but has had consistently high rates for several years. Barclays is more of a promotional short-term kind of rate. Capital One is kind of in the same boat, so I'd put Ally as a better chocie. Ally is very focused on being "no fee".

  5. Petunia 100 Says:

    In the past, I have had online savings accounts at Ally, ING (now Capital One), HSBC, and TIAA-Cref. Currently, I have my savings at Barclays. It takes a few days for money to transfer back and forth, so you have to keep that in mind.

    Ally offers MMA accounts as well as savings. An MMA account comes with a checkbook. If you need to have your funds immediately accessible, this might be a good way to go.

  6. fruitbowlk Says:

    I park mine in an online account. Look at this.

    http://www.bankrate.com/funnel/savings/savings-results.aspx?local=false&IRA=false&prods=33&ic_id=CR_searchMMASavingsRates_checking_SeeallMMASavingsproducts

  7. snafu Says:

    If you visit the Forum section of this site there is a thread for Investing and Banking which lists saving vehicles and their rates.
    http://www.savingadvice.com/forums/investing-banking/

    I've a different system which adda a modest amount of risk since health care is not an issue and my employment is stable.. Experience taught me that serious emergencies didn't need instantly available large sums. I worked out the sum needed to cover basic expenses for six months + $ 500. cash at home. In an emergency, ATM machines can lose power or run out of money making Cash king. I've always kept a minimum $ 1,000. as a float in chequing for quick access and a long list of free services it gives, It's 3rd function protects from DH causing a careless overdraft. DH keeps a minimum of $ 1,000. aiming for $ 2,000. in a linked savings account. These sums cover unexpected, non catastrophic expenses which are often better charged on a credit card and paid by due date.

    I opened and low cost, no fee Dividend Mutual Fund for serious, must fund 6 months of living expenses if I were incapacitated or abruptly lost income. The initial cost to open was $ 1,000. and I added an automatic, monthly transfer from chequing. Once it reached the ideal sum, only the re-invested dividends increase holdings. I'm shocked at how much this fund has gone up this year. I fully understand it can go back down really fast if there is another catastrophic event. I also understand that the underlying value of the specific holdings is the important factor.

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