Emergency fund: where to keep it
An emergency fund is money set aside for surprises – a job loss, a repair, a medical bill. The CFPB guide covers how to build one step by step. Two rules: it must be safe, and you must be able to get it fast.
Where it can sit
- High-yield savings – FDIC insured up to the limit, instant access.
- Money-market funds – usually available within a day; not FDIC insured.
- Treasury bills – short terms, free of state tax; can be sold through a broker.
Earn more without more risk
On the same low-risk money, after-tax yields differ. IncomeGrid ranks every item by yield after tax for where you live: federal, state and each investment type (Treasuries, municipal bonds, corporate bonds, funds, REITs and filed offerings are each taxed differently).
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Sources
- CFPB – An essential guide to building an emergency fund
- FDIC – Understanding deposit insurance
- TreasuryDirect – Treasury bills
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