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We have a (depleted at this point) Emergency Fund that is in a Money Market Acct.* I'm wondering whether we'd be better off putting this into I-bonds given that the interest is much better and they can be cashed early with little penalty.
Thoughts anyone?* Potential drawbacks?
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Depends on what an emergency fund is to you.* For my emergency fund, i demand safety in principle and maximum liquidity of the money.* *With a money market fund, you can write a check and pay for the "emergency" on the spot.* *I presume you cant write checks on an I bond or I bond fund (unless its a money market fund that holds I bonds).
If you ask me, any kind of bond is an investment, not an "emergency fund" per se as i define it.