FlyerTalk Forums - View Single Post - Move emergency fund from money market to miles earning/high interest checking acct?
Old Nov 3, 2012, 11:00 am
  #6  
guv1976
FlyerTalk Evangelist
 
Join Date: Dec 2003
Location: Not here; there!
Programs: AA Lifetime Gold
Posts: 29,532
Wirelessly posted (BlackBerry: BlackBerry8530/5.0.0.1030 Profile/MIDP-2.1 Configuration/CLDC-1.1 VendorID/417)

Capital One offers a checking account paying about 1% for the first year; Ever Bank offers a similar rate, but only guarantees it for six months.

You might also consider moving some money into Series I U.S. Savings Bonds. You cannot redeem for the first year, and after that, there is an interest penalty if you redeem within five years of purchase. But even with that penalty, you're still likely to do better than with a bank, as long as you do not need to touch the money in the first year. You can elect to defer paying income tax on a bond's earnings until you redeem it, and the interest earned is exempt from state and local income tax. But there is an annual purchase limit of $10,000 per calendar year per person. Note that bonds earn interest from the first day of the month when purchased, so it's wise to buy bonds near the end of the month, and redeem them at the start of a month. More info at:

http://www.savingsbonds.gov
guv1976 is offline