6 Places to Park Your Emergency Cash Right Now
It is very important to save a few extra bucks for rainy days, whether you are trying to save hundreds or thousands of dollars. Thus, the question that many people keep asking is where can one put it? Rescue one financial is a good option for most people- there are so many reviews left online by users about this company. Parking your emergency fund to a safe place is something you will be happy to do, and it will yield multiple dividends to you at all times.
Rescue one financial offers good financial services for people, by teaching you how to effectively and proactively park your emergency cash right now. Here are top 6 places you can pack your emergency cash right now:
Money Market Accounts
Money market account is much similar to regular savings accounts. This is an option if you are looking for something that will guarantee a better interest rate. If you invest in money market accounts, you will be limited by a number of monthly withdrawals. To enjoy the benefits offered by money market accounts, you may be required to make a higher minimum deposit among other options.
Treasury Bills and Savings Bonds
If you have plans to diversify your emergency funds at the moment, then treasury bills and savings bonds might be the safest option. If you invest in them, you will be buying them at a discount, and at the maturity date, you can cash the full face value. The maturity period of treasury bills range from 4 to 52 weeks, and the smallest amount you can invest is about $100.
On the other hand, savings bonds are a long-term investment option. To get started, you may need to invest $25, and the shortest period you can have savings bonds are for 1 year. Currently, if you invest in it, you will enjoy good return on investment.
Liquid mutual funds
It is less volatile to invest in mutual funds than investing in individual stocks. By browsing on the internet, you will see a wide range of ideas and reviews posted by people about liquid mutual funds. If you need tutoring on the ins and outs of the marketplace, it will be safer to seek wise counsel from your financial advisor.
You will never regret keeping some of your emergency savings in a mutual fund; it will generate a significant financial growth for you. This is one of the safest ways to create an investment plan for you.
This is a tool for retirement planning. As of 2015, if you are more than 50 years, you can invest up to $5,500 or $6,500 in Roth IRA and every contribution is made with after-tax dollars. If you withdraw money before the age of 59, you will be liable to pay 10% penalty.
As an investor, if you withdraw only the amount you have contributed, then you won’t be required to pay income taxes on the withdrawals. If you are funding a retirement account via your employer, and you have some cash left in your savings account, then using your Roth IRA as a backup will be a safest and innovative option.
All you need to do is to try as much as possible to avoid 10% early withdrawal penalty. If you experience a challenge like an unforeseen physical liability, or you want to further your education or acquire a home, then you will be eligible for a penalty-free early withdrawal option.
Certificates of Deposits (CDs)
Opening a CD or certificate of deposit could be one of the coolest and most innovative ways to earn some great interest in your emergency fund. If you engage in this, you will be guaranteed of gaining a high return on investment.
Alternatively, you can open multiple certificates of deposits with varied maturity dates; this will help you to engage the opportunities or privileged offered by a certificate of deposits.
Savings bank accounts
Opening a savings bank accounts might be one of the best places to keep your money. Putting your emergency fund in this platform will allow the funds to be accessible to you at all times, and will also give you the privilege of earning great interests on your deposits.
To enjoy this benefit, you are required to take time and look for a high-yield savings account, and look for the best options with no balance requirements, monthly fees and come with a competitive interest rate.
Since some financial institutions like banks provide ‘welcome bonuses’ for their new customers. By investing in savings bank accounts, you will earn some benefits if you satisfy the stipulated terms and requirements.
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