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6 month of work just sitting thete getting eaten away by inflation doesn't spund smart. Either invest that shit or boof that shit while getting your dick sucked.
It is very smart. If you lose your job or have a major expense, not having to put it on credit provides you with a lot of stability, and you don't have to pay interest.
-someone still paying off 4 months of unemployment a year ago
You can have your emergency funds in a high savings account as long as you can withdraw it without a pnealty
I have my emergency fund in a savings account with 3% interest rate. So my bank is giving me money each month for doing nothing really and I can withdraw my money whenever I want.
Where in the fuck are you getting 3% interest??
Around here, it's usually not at a local physical bank. My online high yield savings is currently at 4.5% though; that's where my emergency funds are.
6mo CDs: up to 5.3%, no minimum
Bank Norwegian is currently at 3.25%. Of course at times of 4% inflation it's not enough
In germany. I don't know how long these offers will be available but some banks already reduced the interest to 1,75% or something. I just switched bank for my emergency fund. I'm trying to be above the inflation rate which is currently something around 2,5%
I'm sure anyone reading this in the UK is already aware of MSE but just in case: https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#easyaccess
A quick glance suggests most of those really high ones are time-limited bonus offers, but other places are doing quite high interest in general e.g. Marcus is paying 4.75%.
I am not endorsing this because I don't have it myself and know nothing about it beyond this, but the savings account Apple introduced a year or two ago has 4.5% interest.
Here's a few lists I might use (Finnish):
Just over 3% is common. Terms and conditions may apply. Your local selection might naturally be different.
You are barely keeping up with inflation, don't think that's an investment. That said, you are doing the right thing, keep that money available if needed.
Everything on top of 6 months expenses, you should invest in something less liquid that on the long term yields decent returns.
It's not smart to use your emergency fund as an investment. The point is that you keep your emergency fund in an savings account that has at least an interest rate like the inflation rate and you should be able to use that money any time.
I never said that I'm doing an investment with that. No idea why you mention this.
This part made me think you were saying that was an investment, sorry I misunderstood
So my bank is giving me money each month for doing nothing really
USD Inflation is ~3% per year currently, which is easy to beat with a high yield savings account. Anything more than 6 months should definitely go into an index fund though.