topic Re: Where do people keep their Reserve Fund? in Community Chat

Where do people keep their Reserve Fund?

casuallady — Thu, 20 Mar 2014 13:16:19 GMT

Suze O, and Dave Ramsey,... suggest building a 6 month Reserve Fund. My question is where do we keep it, A CD barely gets a % interest. This could be a lot of money that we don't want to risk loosing, but do we just let it set in a saving.

Re: Where do people keep their Reserve Fund?

Lila Belle — Thu, 20 Mar 2014 13:26:28 GMT

Ours is in savings so it can be accessed. With a CD a withdrawal would incur a penalty.

Re: Where do people keep their Reserve Fund?

glb613 — Thu, 20 Mar 2014 13:27:14 GMT

Why can't you have it in a savings or money market account? It may not make a lot of money but, if it's money you need in an emergency, you don't want it tied up or have a penalty if withdrawn.

Re: Where do people keep their Reserve Fund?

brii — Thu, 20 Mar 2014 13:29:29 GMT

Money Market account is a good account to keep savings in. You can withdraw without penalty.

Re: Where do people keep their Reserve Fund?

stilltamn8r — Thu, 20 Mar 2014 13:32:03 GMT

with longer term you get better rates- if you are set on a CD, 6 month will likely yield even HALF a percent- you would need to 3-5 years to get 1.6% or so....How liquid do you need it to be? You should probably just choke it up and do a regular savings account if you need access that badly

Re: Where do people keep their Reserve Fund?

Preds — Thu, 20 Mar 2014 13:38:40 GMT

Third drawer down on the right side.

Re: Where do people keep their Reserve Fund?

Luv2Decorate — Thu, 20 Mar 2014 13:44:24 GMT

We have ours with our financial planner. It would have to be something very important for us to touch it. It's after taxes, we set it up knowing we can get to it without penalty.

Re: Where do people keep their Reserve Fund?

KathyPet — Thu, 20 Mar 2014 13:59:13 GMT

We have ours in a Money Market account with a investment firm. You have to accept the fact that if you want easy access to that money the interest you are going to,earn on it will be minimal.

Re: Where do people keep their Reserve Fund?

Mom2Dogs — Thu, 20 Mar 2014 14:14:33 GMT

We keep some money in a secure place in our home and we also have a reserve in the bank that you can write checks on...either way the money is easy access.

Re: Where do people keep their Reserve Fund?

Topaz Gem — Thu, 20 Mar 2014 14:23:45 GMT

Financial experts tend to advise that we keep our emergency funds in regular savings accounts. They need to be easily accessible with no penalties, as emergencies do not announce themselves ahead of time...they just happen when you least expect it.

Re: Where do people keep their Reserve Fund?

croemer — Thu, 20 Mar 2014 14:32:11 GMT

On 3/20/2014 Predsfan said:
Third drawer down on the right side.

Third drawer on the right huh? Hmm...road trip!

Re: Where do people keep their Reserve Fund?

Mominohio — Thu, 20 Mar 2014 14:37:33 GMT

I think an emergency fund is not useful if not very easily accessible. We choose to keep it in a separate checking account at the bank we do all our regular banking with. It is a separate account to prevent us from easily using it as we pay bills or make purchases out of our regular account. A savings account would be just about as easily accessed.

I think it is important to keep some cash at home as well. We don't use debit cards, and prefer to keep credit cards paid off, so some cash on hand is important to us.

There is so little interest to be earned in accounts that are accessible, so we don't even worry about not making any money on this fund. It is not part of our long term savings or retirement planning, it is just for emergencies.

Re: Where do people keep their Reserve Fund?

sgraham30 — Thu, 20 Mar 2014 14:50:05 GMT

Mine is in a Capital One money market account.

Re: Where do people keep their Reserve Fund?

chrystaltree — Thu, 20 Mar 2014 15:09:45 GMT

We were advised to keep our emergency reserves in savings account because in an emergency; we want to have access to that money immediately and without any penalty. We don't keep 6 months in reserve but we do keep 3-4 months in special account. The account earns interest, we're happy with the interest we get on that money. It's not there to create wealth for us, it's for protection and security.

Re: Where do people keep their Reserve Fund?

lulu2 — Thu, 20 Mar 2014 15:14:52 GMT

savings account

Re: Where do people keep their Reserve Fund?

Lipstickdiva — Thu, 20 Mar 2014 15:57:24 GMT

My bra. That's why I look so well-endowed!

Re: Where do people keep their Reserve Fund?

Lotus — Thu, 20 Mar 2014 16:00:29 GMT

Reserve Fund?

Re: Where do people keep their Reserve Fund?

terrier3 — Thu, 20 Mar 2014 16:04:39 GMT

Ally savings account...it's at .9% now...higher than their money market account.

For years I had my savings in an on-line savings account at HSBC, where I also have my mortgage. Rates were the BEST in the country.

Then HSBC sold all their retail banks in my area and eliminated the high rates on savings accounts. Later they had to pay a HUGE fine for money laundering Mexican cartel and Russian mob money. So I wouldn't bank with them now anyway!

Most of my money is still in my former employer's 401K (Fidelity accounts). It's doing well, so I don't want to switch until I can spend time researching options.

Re: Where do people keep their Reserve Fund?

Lipstickdiva — Thu, 20 Mar 2014 16:55:46 GMT

Terrier how do you get your money out of an on-line bank quickly?

My DH had his 401(k) with Fidelity but not long after he left the job, they made him get it out of there because it was still under his employer.

Re: Where do people keep their Reserve Fund?

terrier3 — Thu, 20 Mar 2014 16:59:52 GMT

On 3/20/2014 LipstickDiva said:
Terrier how do you get your money out of an on-line bank quickly?

My DH had his 401(k) with Fidelity but not long after he left the job, they made him get it out of there because it was still under his employer.

You can transfer your on-line savings money to your local bank (on-line transfer) and then withdraw to get the cash you need.

My company gave me 4 choices for my 401K money - keep it in the company plan, roll over into a personal IRA, roll over to a new employers (I'm self employed now) or cash it out.

I decided to keep it in my former employer's Fidelity Plan now.