Emergency funds can't be used as investments, because the possibility exists that your money won't be there when it "rains".
You can not "do better" if the stated purpose of your savings is for emergencies or for short term needs. You won;lt make much on it - - so think of your "lost interest" as insurance.
Hi Nicholas!
Sorry I didn't have enough space in the question box to post all of my financials. I actually also already have a 401k through my company and am putting 600 into that each month. The $600 I'm putting into the savings account is kind of my rainy day fund. I would like to be able to access it in emergencies or if I want to eventually put a down payment on a house or take a vacation...etc. I'm just wondering if there is a way I can make that money work better for me while It's just sitting there?
"be able to access it in emergencies" - if you need it that liquid then keep it in the savings account (or in a safe at your home); any other investment vessel will have varying degrees of illiquidness and/or withdraw penalties.
