Emergency Reserve (ER) Account

Now that we have determined the amount of our Emergency Reserves we need an account that will complement our plans. I have used ING Direct in the past and I have been happy with their products. A quick review on the web found another option which is HSBC Direct. Both account offer a reasonable return, ING currently at 2.5% APY, and HSBC at 3% APY.

Both accounts operate in a similar fashion. The selected account is linked to your existing checking and/or savings account(s) and they allow you to transfer money between linked accounts and pay bills on online. These features are ideal for Emergency Reserves (ER) since the money is not in your day to day account. If an emergency does come up an online transfer will allow you to deposit an amount you select from your available balance into the linked account of your choice.

If you currently have money in an typical savings account or a large balance in a checking account we recommend you compare the APY of your accounts to the accounts listed above. You may find a much better rate and an easy way to earn some additional income.