Krista Swetz and her husband are just a few months away from reaching a money milestone.
The Maryland couple will soon have saved the three months’ worth of living expenses I’m always telling folks to have stashed away in case of an emergency.
Swetz wanted to know where they should keep the cash.
First, keep in mind that this money should remain readily accessible. You’ll want to be able to withdraw it quickly without having to sell an investment or pay a penalty.
You have several options. Whatever you select is fine because there really isn’t a wrong choice among these options:
For example, E-Trade and ING Direct, an Internet-only bank. Deposits at both institutions are federally insured.
Getting your money is pretty easy. With a click or two, you can transfer money to a regular checking account at any bank.
When going with a nontraditional financial institution, check the fine print because transfers can take a few days.
To search for the institutions with the highest savings-account rates, go to . Click on the link for “Compare Rates.” Under “CDs & Savings,” select the option for money-market accounts (MMAs) and savings accounts.
You could “ladder” your CDs. Laddering allows you to take advantage of typically higher rates offered by longer-term CDs while maintaining access to some of your money. You buy a series of CDs that mature at different times. . has an online calculator to help you figure out how to ladder your money.
To find the average rates for this type of account, go to ., which tracks money-market funds.
Michele Singletary: singletarym@washpost.com.
