Where to Stash Emergency Cash

We deposited money for an emergency fund with our bank, but is there a better investment method to maximize growth and still have the funds readily accessible?

My wife and I have finally socked away the recommended six months of savings to be used in case of an emergency. We deposited the funds in a money-market account, but is there a better investment method to maximize growth and still have the funds readily accessible?

It's a great time to search for a better home for your emergency funds. Yields on money-market mutual funds have climbed from a measly 1% up to 4% over the past four years, so shifting that money out of an ordinary checking account can finally pay off.

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Kimberly Lankford
Contributing Editor, Kiplinger's Personal Finance

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.