How to Keep Your Emergency Fund Safe, Accessible and Away From Temptation

Georgina Tzanetos   Fri, August 27, 2021,

Keeping extra money around in cash is always a good idea — but it depends on where you keep it.  The old under-the-mattress strategy is never a good idea and with the ease of modern-day banking, a traditional savings account might not be as well.

Banking apps can see your hard-earned savings transferred into an active checking account with a few swipes, and the money used for things other than you intended. A traditional savings account can be useful for things like saving for a home, travel or college savings, all of which can ebb and flow with changing goals and circumstances.

One thing that should never be touched though is a true emergency fund, the kind of money you will need if, let’s say, a global pandemic all of a sudden upends world order as you know it and you need sustained cash.

A good answer is a high-yield savings account. Its biggest benefit — a higher interest rate than a traditional savings account — is not the only reason opening one up is a good idea. High-yield savings accounts are the only accounts of their kind where money is almost as liquid as a regular savings account, but more restricted.

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https://finance.yahoo.com/news/keep-emergency-fund-safe-accessible-114211592.html