First, my emergency account is in a local CU in a savings account earning almost nothing. How would you recommend I manage this? Is there a better vehicle for an emergency fund? I'm think ING direct would work, although it takes a few days to transfer money from ING back to the bank so I could withdraw it.

Secondly, is it even necessary for me to keep an emegency fund? Since I now have credit cards it seems to me that I could do with less for an emergency fund.

Thoughts?

FYI, my job pays pretty well and, unlike most sectors, job security is very high - if I somehow lost my job today I could be working within a week in almost any city in the union for the same or similar money.

An EF is a great idea IMHO. I'd keep $1,000 in the local CU savings for easy access in case of emergency. It's feels much better to HAVE the money to cover an emergency than to go into debt to pay it.
$1,000 won't cover every emergency but it can handle a lot of things that pop up.

That's not a bad idea, though I'd still recommend keeping most of one's EF money in a higher-yield account like ING or HSBC. And I'm not sure I'd keep $1K in such an "easy-access" fund. Maybe half that would do the trick?

h8, HSBC will give you an ATM card and you will earn a decent rate on your money. You can still transfer back & forth but the ATM card will give you some sense of being able to get to money if you need it.

And yeah, even with cc's you still need an emergency fund.

On your advice, I just opened a HSBC account. The ATM card sounds OK, but then I see there are no fee-free ATMs in Texas. Since I'd sooner lop off my left ear than pay an ATM fee, it looks like it's going to be on par with ING since I'll n eed to wait for a transfer.

If it's for an "emergency fund" then the fee shouldn't be too big a deal. You want to be able to get to the money if you REQUIRE it ... but if you're going to charge something and then transfer the money to pay the bill, what difference does it make?

You never listen to me anyway, why'd you start now?

That's exactly how I did it. We have an HSBC branch here, so if I HAVE to get at the money, I can use the ATM card...BUT I have to drive into downtown Philly, park, etc to get at it, so it works out perfectly. I also got a free HSBC checking account w/ debit MC, so if I need the money while we're on vacation or whatever, I can phone transfer it from savings to checking, then use the MC.

VISA
MASTERCARD
AMERICAN EXPRESS
DISCOVER

I used to say that until I lost my freaking shirt thru a thing called divorce....and off work for a surgey.....But for those that cant say that...............put some $$$ back just in case some goofy goes wrong

"IF" FEEDING THE SAVINGS ACCOUNT IS MORE IMPORTANT THAN PAYING DOWN CURRENT DEBT...GO FOR IT

Just put all the money in an ING account. In an emergency, use your credit card, earn the rewards, and when the statement posts, transfer money from IGN to your bank account and pay the bill in full. You pay no interest, and you earn rewards and higher interest on the savings.

Also everyone should ignore GEORGE's suggestion about using Discover (might get charged a FEE to use it!).

There should be a fine balance in there somewhere.....I was just saying that totally using CC, especially if you have a hard time paying them off...should be the last resort...

OP here

I don't have any problems PIF my credit cards.

I think I'm going to at least earn the 4.8 percent or whatever ING/HSBC is paying and use my CC for emergency. As George has said, have a backup or 2 or 10.

In an emergency (like car needs repair, or you have a medical expense) why would you use cash?

Are you really going to want to go to the bank and take out $2500 cash to pay for the car repair when you can put it on a credit card [get rewards and protections] and PIF easier?

ILLEGAL IN CO & CA