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Moved my Emergency Funds

November 24th, 2022 at 09:52 pm

Last week I ended up moving my emergency funds for 2 reasons:


1) My credit union no longer allowed Mint to sync with their instiution.

2) I found a better rate through information shared on the forums.

I suppose I could have put the funds in a CD, but I feel like I wanted them to be a little more liquid. Of course, I often change my mind so that's subject to change.

2 Responses to “Moved my Emergency Funds”

  1. Lots of ideas Says:

    You don’t have to keep your emergency fund all in one place.

    You can do a strategy where part is in an easily accessible, small yield account for ‘cash only’ access - which there are probably few emergencies where you need cash right away.

    You can keep the bulk in laddered CDs - where maybe you put $1000 each month into an annual CD - after a year, you have access to 1/12 of your money penalty free.

    There are few emergencies where you don’t have the option of using a credit card - with points or cash back - in the immediate. Then you can look into no interest cards if you need time for money to mature or pay the penalty for cashing in a cd early..

    If you are not using all the space in a Roth IRA/401k, you can even park some emergency funds there using a safe vehicle like a CD so that any interest you earn is tax free.

    Of course, these are not strategies for someone with credit card debt and no retirement savings - this is a strategy for someone with good credit and a stable budget…

  2. terri77 Says:

    All great information, Lots of ideas. I am maxing my funds in my TSP & IRA and investing all those funds aggressively. I also have money from the sale of my condo invested. This could be money for a down payment if I decide to purchase another home. I did look at CD rates. Possibly I will try to snag one before rates start falling. Some people think we’ve hit our peak on rates, but I was expecting the Feds to maybe raise rates once or twice more. Who knows?

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