Where to stash our EF?

**steve-in-kville** · 10-04-2007, 04:29 PM

My wife and I had a mutual fund that was heavily invested in stocks. Since we are doing a complete over-haul of our financial stuff, I cashed it out while it was up. I want to keep it in something that can be readily accessed in the event of an actual emergency, yet in something that earns interest. I was thinking of just a plain 'ol savings account, but also looked at short-term bank CD's.

Were do you keep your EF?

steve

**gentledenny** · 10-04-2007, 04:43 PM

I keep my buy a house /emergency fund in a GMAC BANK money market savings account. It pays 5.3 percent right this minute. Of course. living in alabama there is no GMAC Bank anywhere near me. BUT you get a debit/visa card, checks, and that is enough for me. They have a limit of 3 withdrawals throu the checks a month. I dont beleive there is a limit to atm withdraws. But it works for me. It is FDIC insuranced. Money i have left each month from my day to day affairs i just have a payee from my regions bank online account and send it to em. They do sometimes seem slow to deposit my funds. But i guess i also just in a hurry to see it didnt get lost in the system.

**gentledenny** · 10-04-2007, 04:44 PM

They dont have a required deposit. i mean you dont have to have 5000 dollars or whatever to fund the initial deposit and is easy to set up on line. i think you can probadly start it with 50 bucks.

**steve-in-kville** · 10-04-2007, 04:52 PM

I'm kinda leaning towards the CD idea, since out local bank offers a 9-month, no penalty CD. I can just add to it every few months.

OTOH, a savings account would be more convenient, since I can add small amounts at any time.

Something to think about...

steve

**Momof4cats** · 10-04-2007, 04:57 PM

I've heard quite a few people like ING.

**steve-in-kville** · 10-04-2007, 05:13 PM

Originally Posted by Momof4cats

I've heard quite a few people like ING.

Whats that? Lost me on that one. Please expound.

**YankeeMom** · 10-04-2007, 05:19 PM

We use ING. They are an online bank that offers high interest on savings. Right now, ours is at 4.4, but it's been as high as 6%. In the year that we've had it, we've earned nearly $100 in interest.

The nice thing about it is it's not so easy to get to that we spend it on a whim, but there are no penalties for withdrawing from it early or whatever like there are for some investments.

**frugalfarmwife** · 10-04-2007, 05:23 PM

Yep, ING bank is great, it's directly hooked to your checking account and you can transfer money back and forth within a few days. Regular savings is at 4.3% right now, and they have CDs from 6 months and up.

No minimum on the CDs either. I have 6-6 month CDs as my EF, that way the money is right there 10 days a month for withdrawal or you can roll the account over.

ING.com

kj

**gentledenny** · 10-04-2007, 05:51 PM

I just checked with GMAC BANK. cause i too have heard about ing and thier money market account. GMAC right now is paying 4.9 So i guess this credit crunch thing is affecting us. DON"T you have to pay a penalty if you were to have to cash in your CD. although you could get the money the day you needed it. you loose a little bit. maybe not enough to really worry. I guess all that matters is that you save it in either or. A money market or CD. I am sure you will make the right decision for you. A place i go to answer some questions is Fatwallet.com. they got a lot of know it all people there that will give you a good education althought not a frugal one. They do post about saving money on things but they are more consumers there than savers as this forum.

**FrugalMomof3** · 10-04-2007, 06:06 PM

I have mine in a CitiBank ultimate savings account earning I think 4.75% which isn't bad and I have debit card should I need to go in and take some out for an emergency.

I make my deposits online though, no local branches but that's cool with me, I just do transfers from my bank account to the savings.

**JustJoy** · 10-04-2007, 07:06 PM

Mine's in ING

**Drgnfly423** · 10-04-2007, 10:58 PM

I have ours set up at ING. We have 6 months saved total. I have 6 different CDs set up with one month of expenses in each so that one matures each month and reinvests itself. So every month around the 22nd one will mature, if I don't need that months e-fund I'll let it reinvest.

**Opal** · 10-04-2007, 11:14 PM

I don't exactly have an emergency fund. I have a checking account cushion and a savings account, I literally can't touch right now. Well that is the joy of moving several states away from where you lived for 22 years. I haven't changed banks yet.

**Momof4cats** · 10-05-2007, 08:33 PM

Originally Posted by steve-in-kville

Whats that? Lost me on that one. Please expound.

Do a search for ING Direct. And I see some others have expounded already.

Their CDs pay a higher rate, of course, but even their savings account (no fees, no charges, no minimum balance) is paying 4.3%. That being said, right now my savings account is just a passbook savings at my local bank. It's just an embryo emergency fund.

**sdrjeolsen** · 10-05-2007, 09:51 PM

I have mine in Emigrant Direct...very similar to ING. It is paying 4.75...just dropped at the beginning of the month from 5.05

It is linked to my checking account, I can transfer money in and out as much as I want. Takes 2 business days to get to it. I don't have a debit card or checks on it though. I access it through transfering it into my checking.