You are correct. CDs are a good vehicle for money you know for sure you won't need for X amount of years. So like saving for a wedding, a new car, braces for the kids, a down payment .etc. But you can't time an emergency. Having your emergency fund locked into a CD if you end up doing an early withdrawal you might have fees or lose the interest that was being accumulated. HYSA you can depending on the bank either access same day or within 3 business days. So the latter case, you could put it on a card and then pull the savings and pay it off immediately. Hope that helps!
That is how a lot of people handle emergencies, which isn't awful but can be expensive and cause personal issues. Owing money to friends or family can be annoying. Hopefully these tips help you out!
Correct me if I’m wrong: Don’t put your emergency fund in Certificate of deposit (CD)
You are correct.
CDs are a good vehicle for money you know for sure you won't need for X amount of years. So like saving for a wedding, a new car, braces for the kids, a down payment .etc. But you can't time an emergency. Having your emergency fund locked into a CD if you end up doing an early withdrawal you might have fees or lose the interest that was being accumulated. HYSA you can depending on the bank either access same day or within 3 business days. So the latter case, you could put it on a card and then pull the savings and pay it off immediately. Hope that helps!
My emergency fund…. credit cards and friends 😅😅
That is how a lot of people handle emergencies, which isn't awful but can be expensive and cause personal issues. Owing money to friends or family can be annoying. Hopefully these tips help you out!