TRANSCRIPT

Hi Greg Vojtanek here of Fade In Financial. So now you have an emergency fund. Congratulations! Or perhaps you're adding to your emergency fund. But the question is, what do you do with it? Where do you put that money? It's probably not the best idea to keep it in your checking account or basic savings account in your bank. That's almost the equivalent of stuffing your mattress with it. There are much better options out there.

The number one option that I like to tell my clients where to put the emergency fund is in United States Treasury Bills. They are short term. They are often referred to as being “risk-free” because they are fully backed by the United States government. And a really good benefit of it is they are tax-free at the state level. That's right, you will not pay state taxes if you get interest from U.S. Treasury Bills.

Another option is Money Market Funds. Those interest rates are very similar to U.S. Treasury Bills, probably just a little bit less. But that money can easily come and go from your checking account if you need it for emergencies.

Then the third option is High-Yield savings accounts. Not as good interest rates as U.S. Treasury Bills or most Money Market Funds, but still really good interest rates right now. The money, very similar to Money Market Funds, can easily be transferred to and from your checking account.

So do what is best for you. Everyone's situation is different. I hope you found this helpful. Thanks.