I think this savings account is encouraging you to keep too much in cash. Does it hold more than 12 months of your expenses? Is it a large emergency fund? If it's reasonable, I'd suggest opening a savings account somewhere else that allows withdrawals.
You're right, it's more than a year's expenses and waayyy more that I'd like to have in an emergency fund (while I work I'd be ok with a 1000-2000€ emergency fund because if needed I can take out about the same amount from bank accounts for just a few € of interests over a month, but when I fire I'd like to have maybe 3000-6000€ available). This is because that's where I was putting my savings before I learned about index investing.
I am now considering closing this account to put most of the money in ETFs and keep 1-2k as an emergency fund, but what I'm wondering is whether it's worth losing this guaranteed 2% account for later, and where to put this emergency fund. I could use a regular savings account (with withdrawals allowed) but that only earns 0.75%. That's why I'm looking for something less volatile than the market for this emergency fund, but with a better yield than .75%. I guess what I'm asking is, when people allocate their money between stocks and bonds, where exactly do they put the bond portion (I don't have access to VBTX), and also, for people who use money markets, what return do they yield?
Wait - is that account a scam of some kind? CDs don't let you add money to them, and you can still reinvest. The only time I've heard "if you withdraw, take all your money back" is when reading about Bernie Maddoff, who used that approach to threaten investors. And he was running the largest pyramid scheme of all time, with fake account statements. Probably not your situation - but that restriction is very odd.
Ha ha no, it's not a scam (well I certainly hope not, as it's run by the government :). It's a kind of savings account that's meant to incite people to save over medium-term (usually for a home down payment): it's tax-advantaged and gives decent interests compared to regular saving accounts, but the trade-off is you have to put some money in there every month, you can't withdraw money without closing the account, and if you close it before a certain period of time (4 or 5 years) you lose the tax benefits.
Can you explain the "46% stocks"? Did you buy mutual funds / UCITS or did you buy stocks of specific companies?
These are broad-market ETFs (total world, euro stoxx, ...).