Dave Ramsey’s third Baby Step is to fully fund an emergency fund to cover your family for a three to six-month period.

Have you completed this step? If so, have you paid any mind to that account since funding completion?

We often get calls asking if clients should invest their emergency funds, in short, no, you need instant access to that money….in case of an emergency.

Where is that account, is it in a regular savings account within your Bank of America, Wells Fargo, U.S. Bank, or one of the many other large banks with an APY of 0.01%?

Go ahead and search for high-yield savings accounts, in seconds you can find numerous banks, brick-and-mortar as well as online banks, that offer between 1% and 2%.

Why settle for “good enough” when you can have your emergency fund still liquid, while also gaining almost 200% more in interest?

  • A $25,000 account sitting in your typical bank savings account at 0.01% APY for 10 years would be worth $25,025.01.
  • A $25,000 account sitting in a high-yield savings account at 1.5% APY for 10 years would be worth $29,013.52.

Money that you hopefully won’t need to use can work for you, let it!