Guides / Where to keep it
CDs, money market accounts and cash at home
When each makes sense for emergency money.
A savings account isn't the only option. Some people split their emergency fund to earn a little more on part of it.
Money market deposit accounts
Similar to savings accounts, sometimes with check-writing. Compare rates, fees and minimum balances.
Certificates of deposit (CDs)
A fixed rate for a fixed term, but usually a penalty for withdrawing early. Some people put the part of their fund they're least likely to need into short CDs, or use no-penalty CDs.
Cash at home
A small amount for power outages or when cards don't work can help. Keep most of your fund in an insured account, where it's safe from theft and fire.
Not for emergency money
- Stocks and stock funds, which can fall in value right when you need the money
- Crypto
- Retirement accounts, which can carry taxes and penalties on early withdrawals
General information, not investment advice. Penny Vaults isn't paid by any bank or lender.