Moved my emergency fund from Wells Fargo to a brokerage account 6 months ago

I had about 8 grand sitting in a savings account earning 0.01% APY for years. After reading some posts here, I opened a brokerage account with Fidelity and put the money in a money market fund earning around 4.5%. Yesterday I checked my statements and realized I made over $180 in interest in those 6 months versus maybe $2 at the bank. Has anyone else made the switch and regretted losing the instant access?

3 comments

3 Comments

oliverbailey3d ago

Brokerage money market is where it's at. Left $200 in my checking just in case but everything else went into Fidelity's core position. That $180 covers my internet bill for months. Only time I needed cash quick was when my freezer died and the transfer hit next day before the repair guy even showed up. Getting paid to be prepared feels like cheating or something.

reese_patel1mo ago

Right, because who needs the security of knowing you can grab your cash in a crisis when you can brag about making an extra $178? Real talk though, the only thing you lost was the ability to feel smug about your 0.01% APY. If an emergency is so sudden you can't wait a day or two for a brokerage transfer, that's not an emergency, that's a desperate need for tacos at 2 AM. I moved my stuff over six months ago and honestly, the only regret I have is not doing it sooner.

carr.xena1mo ago

Oh man, I did the exact same thing last year. Moved my emergency fund into a high-yield account and it was such a no-brainer. I even left a tiny bit in my regular bank just in case, like $500. Never had a moment where I needed cash that fast. The extra interest paid for my Netflix and a few takeout nights.