Where to keep a $40,000 emergency fund right now (and where not to)
In today's economic climate, choosing the right place to store a $40,000 emergency fund is crucial. High-yield savings accounts and money market accounts are currently recommended for their accessibility and competitive interest rates. Conversely, certificates of deposit (CDs) are advised against due to their lack of liquidity and potential penalties for early withdrawal.
- ▪High-yield savings accounts offer interest rates close to 4% and are FDIC-insured up to $250,000.
- ▪Money market accounts provide similar rates and allow check writing for easier access to funds.
- ▪Certificates of deposit (CDs) are less suitable for emergency funds due to penalties for early withdrawal.
Opening excerpt (first ~120 words) tap to expand
MoneyWatch: Managing Your Money Where to keep a $40,000 emergency fund right now (and where not to) We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Matt Richardson Matt Richardson Sr. Managing Editor, Managing Your Money Matt Richardson is the senior managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance. Read Full Bio Matt Richardson May 26, 2026 / 2:58 PM EDT / CBS News Add CBS News on Google There are better places than others to store your $40,000 emergency fund in today's economy.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at CBS News — Top.
Discussion
0 commentsMore from CBS News — Top
