Anyone has any suggestions on where to park ones emergency funds with the money being extremely liquid and also getting the optimal returns. Say for example I want to park my living expense for one year in full in something maybe in the event of a job loss. And if so that happens I would want the amount to be withdrawn,a certain amount every month till I find a new job.
Now what i want to know is that eventhought the amount is for contingency needs, I want the money to earn the best possible returns at the same time not stuck under any agreement and can be moved with a time frame of say 3 days.
I was thinking of B2B online accounts that some banks offer. I currently have one where in the money gets placed automatically in FD(if its in the account for a few days) thereby earning interest. However there is no penalty for withdrawing the money.
the other day i got an email from a mutual fund company about liquid funds where in money can be put on Friday and withdrawn on monday if need be. I assume this is money market account.
Anyone have any inputs ?