Determine Optimal Return for Emergency Savings Account

posted Wednesday, Dec 14 2011 by Marc G.

Details

City:

Virtual (Anywhere)

Description:

Currently I have $45,000 in cash in a savings account set aside for emergency savings. The goal is to keep these funds aside for a worst case scenario so that day to day expenses are met. This means that the entire mount does not need to be made liquid but there should be recurring income from these savings to ensure day to day expenses can be met.

Currently this account yields 0.45% which is terribly.

I'd like to know the best vendor online or physical to optimize my yield for these funds. Open to CDs, Money Market Funds, online savings accounts, or other similar investment mechanisms

Can be done:

Online or by phone

Conversations

6
Level 6 TaskRabbit

katherine g.

Hi Marc, You will probably want someone to do a thorough survey but I'll offer this information for free in case you're interested. You can have both liquidity and a better yield by opening a checking account with ING Direct (you don't have to use it for checking if you don't want, but it you can double your current yield and have FDIC protection). If you kick in another five thousand, you can get 0.9% APY--better than the savings account, and no withdrawal penalties or fees.Kate

Wednesday, Dec 14 2011