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?

2 comments

2 Comments

reese_patel12d 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.xena12d 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.