Money market accounts
Money market accounts usually compare favorably with high-yield savings accounts with regard to APYs and monthly fees. But, unlike typical savings accounts, they may also provide access to checks, debit cards, and other ways to make unexpected purchases in a pinch, making them among the best places to keep your emergency fund. Bear in mind, though: You may be limited in the number of monthly withdrawals you can make (making any purchases best saved for emergencies only), and may be required to deposit a larger sum ($2,000 vs. $1) than with other savings vehicles to open the account. Noting this, you may need more savings in the bank before you can get started with one.
Certificates of Deposit (CDs)
Certificates of deposit are time-based accounts that can offer superior interest rates but require you to leave savings alone for set periods of time ranging from 30 days up to a year, or more. At the end of the term, you can withdraw your initial deposit, and any interest earned on the investment. The upsides of putting emergency fund savings in a CD might include superior APYs to savings and money market accounts and no maintenance or monthly fees. Should you attempt to remove money (if it is allowed) before the lock-in period ends and the CD matures, however, you may be subject to early withdrawal fees. As a result, many investors layer CDs and create investment ladders, investing in CDs of varying term length (the longer the term, the better the rate), to provide more ready access to capital while maximizing financial gains. For example, you might simultaneously keep funds in a three-month, six-month, and 12-month CD to improve liquidity and interest yields.