First post!! - Need first recommendation....

[nj101]

Hi fellow Mustachian....

Where do you guys keep your rainy day cash? (Keep in saving or keep at some fund like vanguard)

Also, We have been saving some money to buy our next home but we are keeping that money also in our saving account. After reading through this forums (its amazing.....!!!) it's doesn't look like a good idea..... we are planning to buy our home mid next year.
Is it better to keep that money (for home) in saving account or transfer every thing to vanguard and invest in low risk funds ?

Let me know if you need any further information....

-Raj

[MDM]

See http://forum.mrmoneymustache.com/investor-alley/investment-order/, which includes:
           
The emergency fund is your "no risk" money.  You might consider one of these online banks:           
   http://www.magnifymoney.com/blog/earning-interest/best-online-savings-accounts275921001         
               

[CowboyAndIndian]

If you need the money within a year, keep it out of stocks.  A (relatively) high yield online savings account may be the best place for short term cash.  Look into Ally Bank - they pay about 1%.

+1 to Ally Bank.

[FIexec]

Another satisfied Ally customer for stashin' cash here. 

Ally doesn't have the highest savings account interest rates anymore, but the rates have been consistently stable and near the top for savings accounts.

[Quidnon?]

Hi fellow Mustachian....

Where do you guys keep your rainy day cash? (Keep in saving or keep at some fund like vanguard)

I just keep a set of rolling 3 month bank CD's, so that should I need them, I just cancel the auto-renew and each one deposits into my checking account weekly, for 13 weeks straight.  Each one is roughly what I need for one week's expenses.  Otherwise, they just sit there and spin.  Interest rate sucks, but that's not really the point anyway.

[boarder42]

i keep it in vanguard b/c my taxable investments are large enough to be a rainy day fund. and no one has brought up a good enough reason why i shouldnt live leveraged b/c i might need a giant pile of cash and a credit card wont work.