A reader asks: Where do I put my emergency fund to earn interest and easily access it?
Rates are low across the board right now, but you can t go wrong with a high-yield savings account.
A certificate of deposit is another option, but these accounts are time sensitive.
Thanks to reduced spending over the last year due to the pandemic, I have finally been able to build up a decent emergency cash savings fund. What is the best place/product to park it in that will allow it to gain in value while remaining liquid enough to be accessible in an emergency?
use the money for? And when?
Your goals and time horizon as well as your tolerance for risk should determine the type of investment you choose, whether individual stocks, a mutual fund, or something else. The full $50,000 certainly doesn t have to go toward one goal or investment. In fact, splitting it up can be a smart way to balance risk.
What s the best time to invest? If you re sitting on $50,000, $20,000, or even $1,000, the best time to invest is now. The longer your money is invested, the more time it has to compound. Every day you sit on the sidelines is a day of missing potential returns.