Most people don’t believe it, but even in today’s market, you can still earn 5% interest on money sitting in an FDIC insured savings account. It does require a little bit of legwork to set up, but once you’ve done it, the entire account is completely automated. For most people, a 5% interest savings account is a perfect place to store your emergency fund (it’s where I recommend storing your emergency fund). And depending on how much you like to keep in your emergency fund, you could potentially have your entire emergency fund earning 5% interest per year.
You’re probably pretty skeptical right now, and I admit, I was pretty skeptical too when I first learned about these accounts. But now that I’ve had these accounts for a year, I can pretty much say that they work exactly as I hoped they would. I get 5% interest on the majority of my emergency fund, I never have to look at the account, and I’ve never paid any fees. If you take a little bit of time to set these accounts up now, you can have a great spot to store at least some of your emergency savings.