What's the best way to have access to $5k cash immediately? (pay, rates)

[acegolfer]

My wife wants to have at least $5k cash on hand in case of emergency.

Since we use online savings account, it will take at least 1 business day to transfer for withdrawal.

I don't want to put $5k in my local bank checking or savings account because the interest rates are pretty much 0%.

I don't want to use cash advance using credit cards.

What is the most cost effective measure to set up my banking accounts so that I can have $5k in cash immediately without suffering interest?

[formercalifornian]

A safe? Of course, then your interest is absolutely zero, but you'd definitely have immediate access.

If it were me, I'd just take the cash advance and pay off the card electronically ASAP.

[sterlinggirl]

$5K under your mattress will only lose about $60/year in interest, and probably only $40/year after tax.

Losing that little bit of interest doesn't always mean you come out behind, though. I've gotten great deals (saved at least $500) on used cars, etc. simply because I had the ability to hand the seller cash on a Sunday afternoon.

[formercalifornian]

Good point, Sterling. I hadn't thought of it that way, although I still prefer to keep my money in the bank.

[suzie02]

What kind of emergency do you forsee that you need the cash immediately? Even if the money is in the local bank you can only get all of it during business hours.
The idea of the Emergency Fund is in case your car breaks down or you loose your job. For that a 1 day delay is fine.

[oz in SC]

Originally Posted by suzie02

What kind of emergency do you forsee that you need the cash immediately? Even if the money is in the local bank you can only get all of it during business hours.
The idea of the Emergency Fund is in case your car breaks down or you loose your job. For that a 1 day delay is fine.

A natural disaster.

A bank holiday.

A riot or civil unrest.

[sterlinggirl]

Originally Posted by suzie02

What kind of emergency do you forsee that you need the cash immediately? Even if the money is in the local bank you can only get all of it during business hours.
The idea of the Emergency Fund is in case your car breaks down or you loose your job. For that a 1 day delay is fine.

You don't need an emergency to benefit from having cash available on a moment's notice*. Simply saving ATM fees or an overdraft charge over the course of a year would more than make up for the pittance in interest you'll make on $5K these days.

* Assuming that you're disciplined enough not to waste it

[suzie02]

Originally Posted by sterlinggirl

You don't need an emergency to benefit from having cash available on a moment's notice*. Simply saving ATM fees or an overdraft charge over the course of a year would more than make up for the pittance in interest you'll make on $5K these days.

* Assuming that you're disciplined enough not to waste it

I got my money in a bank that never charges ATM fees and rebates the fees charged at the ATM. Also I never pay for anything with cash.

[oz in SC]

What would you do if a bank holiday was declared?

[drshang]

I have an account with HSBC high interest savings and they gave me an ATM card. I am not sure what more you want I mean you can't write normal checks on a savings account anyway and often banks won't fully transfer money from savings to checking until the next business day if you make your request late in the day.