I keep my emergency fund in a high interest savings account. I don't know what Schwab's rates are, but if you don't care about that yield and have other accounts with Schwab, maybe the simplicity is worth it.

why not just grab some shares of a bond fund? even with the best savings accounts you are slowly burning your money.

Maybe try I-bonds? Better Rates than high interest savings.

The downside is that you can only invest 10k at a time and you’re illiquid for six months.

Why is this getting downvoted? Current return on I-bonds is 2.52%, higher than any high-yield savings that I know of. It compounds semi-annually, tracks inflation, and there are no penalties for withdrawal. Seems perfect for an emergency fund and less hassle than a CD ladder. I'm not shilling an investment product, it's available direct from the US treasury:

https://www.treasurydirect.gov/indiv/research/indepth/ibonds...

It's not a bad idea. I've thought about migrating to I-Bonds. I've kept it in a savings account for the liquidity, but if you are okay with having a less liquid emergency fund, go for it.

Because "emergency fund" and "illiquid for six months" aren't a great combination?

Illiquid in the sense that it takes a few days to liquidate. One can always get back their original investment with no penalties.

Is that correct? According to the TreasuryDirect website, you can't redeem a bond within the first year. If a bond is less than 5 years old, you pay a 3 month interest penalty.

https://www.treasurydirect.gov/indiv/research/indepth/ibonds...

That is correct. It's twelve months instead of six. I was mistaken. Generally speaking an emergency fund should be 3-6 months of income. I justified the illiquid period by moving a third of my fund into it at a time.

The interest "penalty" is simply not getting back the interest accrued in the prior three months.