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Discussion Starter · #1 ·
So, I'm about to the point where DH and I are going to start stocking away for a 6 month emergency fund. Partly, I'd like this money as a security blanket but partly we want to transition from me working PT and DH working FT to one of us working PT out of the house and both of us working at home (we blog and we both have careers we're trying to grow - I'm a photographer, he's a writer). Hopefully we'll be able to transition seamlessly without needing the funds but I want them there in case.<br><br>
Finally, the question: Where do you put all that money? It seems like there must be a place other than a checking or savings account that will earn more interest but I want to have it available if we need it. How can I make this money grow if I'm not using it?<br><br>
Should I have 3 months in a savings account and have the other 3 months more tied up at a higher interest rate but accessible should we run out of the first 3 months? HELP!<br><br>
Thanks in advance! <img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/redface.gif" style="border:0px solid;" title="Embarrassment">
 

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Interest rates aren't too good right now, but a money market account will get you the best rate. You can see who has the best rates right now at <a href="http://www.bankrate.com" target="_blank">http://www.bankrate.com</a>
 

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You can "ladder" CD's. Essentially, you break the total amount into parts. Keep 1 portion liquid in a money market or internet savings account (both are getting around 3-4% right now). Then buy CDs with the remainder so that a portion becomes available again every month (or few months). This keeps the money available, but also allows you to potentially get a higher interest rate.<br><br>
If this isn't clear, PM me.
 

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<img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/lurk.gif" style="border:0px solid;" title="lurk">:<br><br>
I'm wondering the same thing! We've been building our em fund, and I'm not sure what to do with it. Right now we just have it in a savings account, but it's barely making anything on interest, so I'm sure it would be wiser to move it, but my main concern is that it still be accessible.<br><br>
Thanks for asking this zmom, I can't wait to see the responses!
 

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We have ours in a high interest savings account. It's currently earning 3.55 (it was 5% when we started it <img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/greensad.gif" style="border:0px solid;" title="greensad"> ). We have easy access as we can just transfer the money online to our checking account, which we had to do this past month.
 

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It's in a money market account that we can write checks from.
 

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Ours is in an ING account. It gets way better interest than most and is pretty easy to get to if we need to. I've also put some of the EF into an ING cd before, when the interest rate was better than the savings account.
 

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Ditto the ING account here...<br><br><img alt="" class="inlineimg" src="/img/vbsmilies/smilies/joy.gif" style="border:0px solid;" title="joy">:<br><br>
(Sorry just wanted to use that new smilie) LOL
 

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LOL, I totally thought you were asking people where in their house they kept their cash!!<br><br>
We keep our emergency fund in cash. But I'm not saying where. And at the moment it is pitifully small, in case anyone is tempted to try and find it.
 

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<div>Originally Posted by <strong>amyamanda</strong> <a href="/community/forum/post/11561415"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">LOL, I totally thought you were asking people where in their house they kept their cash!!<br><br>
We keep our emergency fund in cash. But I'm not saying where. And at the moment it is pitifully small, in case anyone is tempted to try and find it.</div>
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<img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/ROTFLMAO.gif" style="border:0px solid;" title="rotflmao"> Oh come on, you can trust us...<br><br>
In all seriousness though, for those of you that keep your ef in savings/other accounts, do you keep any cash stashed just in case? I don't yet, but I've been thinking that it might be a good idea.
 

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We have ours with HSBC. The rates have dropped dramatically over the past several months <img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/greensad.gif" style="border:0px solid;" title="greensad">
 

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Right now we just have it in a savings account, but we are going to switch to ING soon.
 

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We keep it here: <a href="http://www.fordcredit.com/interestadvantage/index.jhtml" target="_blank">http://www.fordcredit.com/interestadvantage/index.jhtml</a><br><br>
The rate is higher then ING (3.4 vs 3.0) and anyone can join. You can transfer money in and out as well as use checks.
 

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we are just getting started with this but until we have a decent amount it will stay in our money market checking account, just 'off the books' as it were {in other words it will be there, but it won't be in my check book balance so I don't get tempted to spend it} the checking account gets better returns than the savings account at this point since we are with a credit union and the size of our account determines our end of year share...
 

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Discussion Starter · #19 ·
Wow! Thanks for all the responses. We use ING already so maybe that's our best bet until we get enough saved up that we could dump them into the laddered CDs or something.<br><br><img alt="" class="inlineimg" src="/img/vbsmilies/smilies/joy.gif" style="border:0px solid;" title="joy">:
 

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We use the HSBC online savings account (<a href="http://www.hsbcdirect.com/1/2/1/default/learn-more/osa?code=M1016406DK&Wt.ac=HBUS_M1016406DK" target="_blank">http://www.hsbcdirect.com/1/2/1/defa...BUS_M1016406DK</a>). It's rates are pretty close to a money market account but it's FDIC insured. We used to get 6% but now I think we get about 3.5%. I also like that we can transfer funds online from our savings account at our credit union.
 
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