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I’m curious how individuals of various net worths are storing their emergency fund. A bank that I use, Simple, recently started a 2% savings “goal” within its system that is free from the limitations of savings accounts. This is double the APY of my in-person bank, where am I emergency fund with about 6 months of expenses sits.

How do you handle your emergency fund?


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    I personally use my Betterment account with a medium risk setting (40% Stock, 60% bonds). They have an “emergency fund” account option which is more like a traditional savings account with 2% interest, seems to be almost identical to the Simple one.

    Currently I’m fine with the medium risk Betterment one. I’m young(er), single, and have decent job security so I think the gains outweigh the risks in my case. That being said I have yet to live though a recession with any substantial investments so I could be wrong, and I do try to reevaluate regularly.

    Also, I usually move my cash from my income from my checking account to Betterment about once a month, so I have that sitting in my checking account as a kind of “pre-emergency” fund for smaller incidents.

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      We don’t really have an account dedicated to being our emergency fund. In the past we had a bunch of funds set aside that we used to get some bank signup bonuses, but then stopped bothering with that.

      At this point there’s a negligible interest big-bank account that we get paid into and often through negligence and lack of automation, accumulates to more than a reasonable size for an efund, but then we “correct” this by moving it all into the brokerage accounts.

      This is all to say, we aren’t really good about maintaining a separate emergency fund at all, much less trying to optimize for rates on it. I wish I could say this was some sort of a principled stance with regards to performance chasing and/or saying that worrying about the interest on the efund is probably not time well spent or whatever, but honestly it’s just laziness and good luck of never having been forced to reckon with the potential bad effects of those choices.

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        Mine is way smaller than 100k EUR, so any EU bank is good enough for me.

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          A big glas jar in the kitchen. I guess that’s the bottom end of “various net worths”, but some months I tend to throw in every coin I carry home at the end of the day. That fills up the jarp pretty fast.

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            I’ve started putting “cash” in VMMXX (Vanguard’s money market mutual fund). I have an account at Vanguard, so trading it is free. I can’t have that money immediately, but it would only take a couple of days.