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Kind of surprised people keep so much cash on hand but i'm not sure that's what the OP was talking about. I think he meant what vehicle do you use to keep this money. Me, I have a money market account with Everbank, they were offering above market teaser rates for a year but even now it's 1% which is certainly better than the bank. I have a little over a year's living expenses in cash.
I have about $3k in a local Credit Union account down the street from me - $500-ish in cash reserves at home (ebbs and flows with some of the reselling I've been doing recently due to a potential relocation soon) and the majority of my excess cash that isn't in an investment account is in a checking account that pays 3.01% up to $25k.
Due to my unemployment situation, I'm more cash heavy than I normally would be. I probably have about $75k liquid right now and am expecting another $15k-ish (post-tax) next month from payout of my bonus.
Other than an upcoming $10k Federal and State combined tax bill, I don't have any other major spends, nor debt besides student loans.
The overwhelming majority of that money is going to work for me in other ways. For example:
$1,500 to earn $300 bonus from Chase Checking (done)
$15,000 to earn $200 bonus from Chase Savings (still have 45-ish days before earning)
$1,100 to earn $250 from Huntington Bank Checking (still have 60-ish days before earning)
$1,500 to earn $250 from Fifth Third Bank Checking (done)
$5,000 earns 5% from the Insight Visa Prepaid Card's savings account (since that's the max that will earn 5%)
$50k earns 3.01% from my bank (one account for me, one for my wife)
I highly doubt that I need anywhere near this amount of cash, but my financial advisor told me to stay liquid with all of the severance pay I got along with my emergency savings and then look into investment opportunities once I'm back on the employment track. Might as well get creative and let that money work for me better than letting it get stale in a standard savings account paying .10%.
i'm not sure that's what the OP was talking about. I think he meant what vehicle do you use to keep this money.
Right. We keep most of our emergency fund(approx. 6 months living expenses) in our Vanguard money market mutual fund. We write checks out of that when needed, or we can have it transferred to our credit union accounts. I was just wondering if there is a better place to park this money?
Never considered having cash on hand for these potential things..makes me think.
You never know when SHTF. At first, it was just a couple of hundred dollars from overwithdrawing from the ATM and money from odd jobs. Then it became a game if I could reach a thousand dollars. Came pretty close a few years ago. All this while, I was putting money in the bank in a savings acct. My situation is probably different than others on this board as I'm still single, not alot of friends and very far from my family and have been for awhile.
I have $10k in a high yield savings account paying 1.5%, the rest is in the markets. Have about $3-5k in my checking account for bills and a little buffer so there is some cushion when paying bills.
Keep $6k in local bank checking account for day-to-day. $4k in Japanese Yen at home. $15k in high yield online savings account earning 1.5% for emergency/escrow (annual car inusrance/life insurance premium etc.).
Right. We keep most of our emergency fund(approx. 6 months living expenses) in our Vanguard money market mutual fund. We write checks out of that when needed, or we can have it transferred to our credit union accounts. I was just wondering if there is a better place to park this money?
Thanks.
I have the same question. What’s your money market rate?
Only other option I like is Ally Bank’s no penalty CD that pays 1.5% for $25k.
This is us Lizap
I keep maybe 700 bucks in a capital one savings account. I can't think of any immediate "emergency " that i couldn't use a credit card if more than that.
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