Good Options for Rainy Day Money

Last month I emphasized the importance of an emergency fund and recommended money market funds from Fidelity or Vanguard as good options for those with the minimum required deposits of $2,500 and $3,000 respectively. However, I’ve since learned of some alternatives that offer similar yields of around five percent for much lower initial deposits. According to the May issue of _Kiplinger’s Personal Finance_ magazine, the (you don’t have to be “older” to be eligible) requires just a $100 initial deposit. also offers an attractive return with a $1,000 minimum.
In addition, the article pointed out that a number of online banks are offering attractive rates on money market and regular savings accounts. Those mentioned included , , , and .
h3(matt). Matt’s View
p(matt). An emergency fund used to be the necessary but boring part of wise money management. Today, it’s still necessary, but with rates topping five percent building an emergency fund is getting downright exciting.