Styleforum › Forums › General › General Chat › Place to keep money for emergencies?
New Posts  All Forums:Forum Nav:

Place to keep money for emergencies?

post #1 of 5
9/12/09 at 7:32pm
Thread Starter 
I need to open a CD or Money Market Account to put my emergency cash. This is money I'm not going to touch unless there's an emergency or I lose my job or something like that. I don't need it in my savings account but would like to keep it somewhat liquid for when I need to get to it.

I assume that a CD or MMA is the easiest to get to if something happens. Any other suggestions? I'll just keep rolling the interest over back into the account and I'll probably just ignore the account (while putting a weekly sum into it to continue building...).
Reply
Reply
post #2 of 5
9/12/09 at 9:26pm
Of those two options I'd go the MMA route. A CD, I believe, has a maturity date, so if the emergency takes place before that and you need to access the money, you would pay a penalty. An MMA has some limits, like the number of withdrawls you can have per month, but that probably wouldn't be as big a deal, as you could make one large withdrawl if necessary.
Reply
Reply
post #3 of 5
9/12/09 at 9:26pm
Not a traditional CD - those have set terms and usually hefty penalties if you need access early. Some banks have changed the rules and allow early withdrawals, but those are really glorified savings accounts.

If you want to beat the standard bank rate and want to do CDs, you can "ladder" your CDs so a little of the principal matures each month or each quarter. What are the odds you'll need all that dough all at once?
Reply
Reply
post #4 of 5
9/12/09 at 10:48pm
Quote:
Originally Posted by Benzito View Post
If you want to beat the standard bank rate and want to do CDs, you can "ladder" your CDs so a little of the principal matures each month or each quarter. What are the odds you'll need all that dough all at once?
That's what I'd do if I was going to go the CD route. A 3month, 2 6month, and 1 1year. If you're going to go MMA you won't get as high of a return but it will beat a savings account by a mile.
Reply
Reply
post #5 of 5
9/13/09 at 12:06am
Don't get a CD. We had a 2 year one that we pulled out 3 months early to buy a house with. We got back less money than we put in!
Reply
Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: General Chat
Styleforum › Forums › General › General Chat › Place to keep money for emergencies?