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jammun14 OP t1_j2dsin2 wrote

Reply to comment by MountainStoneMist in What to do with emergency fund? by jammun14

Yeah I definitely don't want to invest it, hence the refusal for CDs or bonds. Ultimately I want it to be out of sight but easy to access in an emergency. The interest is just icing.

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726372816482 t1_j2dvppn wrote

Generally CDs have very minor penalties for withdrawing early such as reversing the last 2 or 3 months interest they pay out. IBonds are fairly similar as well. Just wanted to point that out, good luck!

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ku91fanatic t1_j2e4kfn wrote

One further point to this is that there are brokered CD's that offer full liquidity and higher rates. Brokered CD's function the same (guaranteed rate, FDIC insured, etc) but there is a market for them to be sold if you need your cash back. There is interest rate risk (as rates go up, the underlying value will go down. But if you hold to maturity then you receive a full return of your principal) but with short durations, the impact is negligible.

I am seeing 3-month CD rates north of 4% and the 1 & 2 year CDs are at ~4.65%.

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RedBaron180 t1_j2fxart wrote

I opened HYSA with ally. I also opened a checking acct with them so it would give me instant access if needed.

Then forgot about it.

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jammun14 OP t1_j2fxiyp wrote

Ally seems pretty popular, so seems fairly user friendly?

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