Where do you keep your emergency fund

Not sure where to park 8-15k emergency fund. Brick and mortars are not paying any interest on saving acct but not sure if on-line account is a good idea for accessibility in an emergency. Currently have all cash in on-line accounts as they are paying the best rates. Not sure I like having all my cash in on-line banks but as I said I’m finding brick and mortars not paying. anything close to on-line banks. Even got out of my credit union as they are acting like a big bank. Maybe my emerg fund doesn’t need to be that large for a true emergency as long as the rest is within reach. How do you manage your emergency fund?

I have several online accounts, including Citi, Ally and Marcus (by Goldman Sachs). If fast access to to you money is important I would recommend Marcus. I’ve had lightning fast transfers in and out of my account, often same day.

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A couple of hundred bucks in my wallet along with a couple of credit cards.


If these are true emergency funds, then the 2 criteria you need to use for where to put them are:

  1. Safety - cannot take risk with emergency funds
  2. Liquidity - must be able to access funds when needed

So with that being said, I think online savings are your best option.

As to how much you need in emergency funds? That’s a personal decision. I have 6 months of living expenses set aside, 3 months in online savings and 3 months currently sitting in I-Bonds (highest risk-free return option). If the I-Bond rate ever falls below the 3-month Treasury then I will switch to that.

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Keep the online savings but additionally you could consider a Home Equity Line of Credit (HELOC) that uses a check book=automatic $ if IMMEDIATE “emergency” money is needed, then just pay it off before month end. Obviously, HELOCs interest is often 2% over prime rate so hopefully your $ in online savings will cover it.


You never know what kind of event will trigger the emergency, it could be anything from a personal situation, a natural disaster, utility infrastructure failure, hostile foreign action… who knows?

So I think the best strategy is diversification spread it around… like a brick & mortar bank, online bank, a good safe, common sense, trusted friends & family, etc. Use you imagination for the place(s) and the form of your emergency funds, survival kits, food storage, evacuation plans, etc.


Thank you everyone for your comments.