Re:Hacking debt
by enraged_camel on Wednesday April 24, 2013 @01:24PM
(#5602732)
3 to 6 months of living expenses would normally be sufficient to keep in the bank in a checking account. That said, we don't live in normal times. Considering the state of the economy, and how long it takes for those laid off to find new jobs, keeping 9 to 12 months of cushion is a better idea.
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There is no reason to keep more than 3 months in a checking account. Past that, CD it.
I'd agree, except for the fact that recent typical CD rates aren't really much better than recent typical savings account rates. E.g. 0.80% on a savings account and 0.90% on a short-term CD. You can probably find better deals, but the amount of money you'll earn for the amount of effort you'll expend finding, opening, and maintaining the CDs probably makes it not a worthwhile exercise.