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Where to put my emergency money?(16 posts)

Where to put my emergency money?Kristin
Mar 14, 2003 7:15 AM
I have no consumer (read credit card) debt. My only debts are my mortgage and my car. I am about ready to complete my emergency fund and wonder where I should store the money. It needs to be accessble--I don't want any high fees for getting at it if I lose my job. In this economy I'm just a little nervous about putting in anywhere but in a safe deposit box. Advice, opinions?
you fear a bank failure?DougSloan
Mar 14, 2003 7:35 AM
Even a checking account with 1% interest is better than a safety deposit box, financially.

You can always just get a small safe at home, too. Depends on what kinds of emergencies you are talking about -- not having cash for the pizza guy, or emergency surgery not covered by insurance...

Doug
I should have worded it differentlyKristin
Mar 14, 2003 7:49 AM
I will admit that scenes from "Its a wonderful life" play through my head from time to time. What IF I goto my bank one day and they say I can't have my money? Of course, I should really learn the laws in this matter. I don't even know if that can happen.

If I supress all my paranoia about the current market and probability that our economy has not seen its worst days...then I guess I'm asking where the BEST place is to keep my money. I'm talking about 6-10K.
InsuredCaptain Morgan
Mar 14, 2003 8:05 AM
You are insured for 100K by the FDIC. The idea that a bank might not give you your money should not even be a concern. Also, it is illegal for a bank to stay closed for more than 3 days (that's why banks are open the day after Thanksgiving -- they can't have any 4-day weekends).

Interest rates on money markets are quite low now, but rates will probably start creeping up later this year.
credit union?DougSloan
Mar 14, 2003 8:06 AM
The best and most secure is probably an insured credit union. You'll get the best rates, customer treatment, and it's about a secure as it gets. If you are really paranoid, divide it up in several places.

Doug
mine is in a mason jar buried under the front porchJS Haiku Shop
Mar 14, 2003 7:37 AM
e-mail me for a pirate-style map with "X" marking the spot. hope you like counting pennies.

arrrgh!

-J
do I hear duelling banjos? :-) nmDougSloan
Mar 14, 2003 7:42 AM
i'm too far northwest for dueling banjos. nmJS Haiku Shop
Mar 14, 2003 8:31 AM
familiar with Frog Jump?DougSloan
Mar 14, 2003 10:32 AM
My maternal grandparents lived near Frog Jump; Rutherford was the "big city," apart from Memphis, of course. Yes, we went and worshipped at Graceland.

They had a farm that had everything, chickens, pheasant, hogs, cattle, horses, row crops, melon, goats, you name it. Had a big old farm house, with no air condition, or even indoor plumbing. Mom was 12th of 13 kids. I loved going there are a kid. I'll never forget three things: 1. my grandmothing wringing the neck off a chicken and the chicken literally running around with its head off; 2. catching my first fish in one of their ponds; and 3. slashing my knee down to the bone on some metal flashing sticking out around the base of the outhouse, and getting stitches from some country doctor (in Rutherford), who said, "We don't have any anesthetic, as folks in these parts usually can't afford it." Seriously.

It's a different life when you are preoccupied with milking, rain, plowing, and getting dinner on the table for 15 people.

If'n you ever ride through them parts, look out for Frog Jump, and be sure to let me know.

Doug
familiar with Frog Jump?JS Haiku Shop
Mar 14, 2003 10:43 AM
looks not too far on the other side of Bells, TN. one of my riding buds lives on highway 70, and rides up to Bells from time to time. i'm guessing the ride to Frog Jump (LOL) from home is 75-85 miles up highway 70. not so sure i'd care to do all those miles on that road, but ya never know.

it sure would make a nice addition to our club "touring" rides. the city name would fit right in with our other unique titles.

my father grew up as the oldest in a family of six siblings, in a farming area in arkansas--the closest town could hardly be considered a town then. i remember as a young 'un being taken to visit my great-aunt and great-uncle at their "house" in the middle of miles of fields. archaic even then, outhouse, no a/c, wood stove for cooking *and* heat, no phone (gasp!), no worries. small fenced "yard" with chickens. their entire lives were farming and hunting. makes you wonder what we're missing (though i'm WAY opposed to hunting).

:)

i'll have to make a point to ride to Frog Jump, and back. i'm sure it'll be one for the memoirs. LOL!

-J
get a load of thisDougSloan
Mar 14, 2003 1:07 PM
http://www.geocities.com/charleyraww/frog.html

Kinda makes you proud, huh?

Doug
LOL. I saved all my pennies one year. $8.47 NMKristin
Mar 14, 2003 7:50 AM
If each penny were .25c it would be $211.75! ;-) nmrwbadley
Mar 14, 2003 8:07 AM
money market accountmohair_chair
Mar 14, 2003 8:14 AM
I don't know how much your emergency fund is, but it might be enough to qualify for a free money market account. This is just a fancy name for a checking or savings account that typically pays higher interest. They aren't typically FDIC insured, but if you go with a major bank (Wells Fargo, BofA, etc.), there should be no worries.
Safe and accesiblemoneyman
Mar 14, 2003 10:04 AM
Savings or money market. Money markets are NOT FDIC insured, but that has never been a problem. Savings accounts are, and it really doesn't matter if its a bank or credit union. Banks insured by Federal Deposit insurance Corporation (FDIC) and credit unions by National Credit Union Share insurance Fund (NCUSIF). Remember that they are INSURED and not guaranteed. If the economy REALLY falls in the toilet, not just looking over the top like it is now, and there are massive bank failures, there is not enough money in the fund to pay off all depositors.

I am not nearly as pessimistic as you appear to be with regard to markets, but emergency fund money should not face market risk. You give up return on your investment for safety and liquidity.

As far as actual returns, money markets are paying <1%. That's less than $100/year on a $10,000 investment. Whether you get 1% 0r 1.2% or 0.8%, it doesn't make a whole lot of difference.

FWIW, women tend to view money as security and take fewer chances with it. Men are less risk-averse, and tend to view money as a replaceable asset. Asking this board, which is predominantly male, for opinions on your investments is like asking it for opinions about world events. Unless the responder is an expert in the field, serious consideration should be made for ignoring the answer altogether.

$$ (Certified Financial Planner)

(not offering any advice, really. Just a learned opinion)

(that was for the SEC and the NASD)

(and any suit-happy securities litigation attorney)

(and I'll deny that I wrote this if called upon)

(someone broke into my office and stole my identity and responded using my name)
saving change...russw19
Mar 14, 2003 10:58 PM
I used to work as a bartender before I went back to school. I used to save all the coin change that I would get as tips. All the other people I worked with would trade it in for cash, but I kept it. I would use the quarters for laundry and the car wash, but I saved the rest. After doing this for 3 years of bartending and waiting tables, I used it to by my Colnago Ovalmaster frameset. In 3 years of saving change, I saved a little over $800 and that was minus most of the quarters. Well, at the time I had about $90 in quarters too because I didn't do that much laundry.

I took all the change to my bank, it was so heavy I had to make 2 trips to my car, and I am not a whimp, it was just that much. I had like $90 in pennies alone....

And on another note, Kristen, you can send that money to me for safe keeping.. I will give it back whenever you ask!

Russ