My wife and I are trying to decide which account type we should store our emergency savings in.  Should we keep this money in a normal savings account where it earns little interest?  Should we look at options for a high yield savings account? Or could we look at storing this savings in low-risk investments offerred through USAA? 


If we pursue the investment option, how long would it take to transfer this money to a more liquid account for use? 


@Masterofnone, We appreciate you reaching out in the member community in regard to this topic. I will forward your post to the appropriate advice area for response. Thank you for your membership. ~ Suzy

I agree completely with the other contributors.  With the current inflation rate hovering at almost 2%  you're losing money in a USAA savings account-The greater the balance, the more you're losing.  I keep my non-emergency savings in an on-line bank and make several hundred dollars yearly in interest.  Whereas, I was actually losing money with USAA.  I decided to keep a small emergency savings with USAA, one that I can transfer into my checking account with the click of a key, to handle true emergencies.  I know I'm losing a little on interest but it's worth the peace of mind not having to jump through hoops to get instant availability.  Good luck in your search.

Emergency funds are very important things to have and its great you're looking for options.   When determining what's best for you, you should figure out what your monthly required expenses are to identify how much you'd need immediately, and then within 30, 60, 90 days of something happening.  Once you have an idea of what those numbers are, you can then look for options and products that best fit your needs.  I've recently found some really great products at Navy Federal Credit Union and some other banks that provide high yield savings accounts along with laddered CDs that met my needs.


In any event, I would defintely shop around as every time I've looked at USAA investment options I've consistently found better products with other banks and institutions. 

Totally agree with Lithgow303 - there are many options out there that are much better than USAA for earning money.  Ally Bank and CapitalOne are other options that have fairly good interest rates.  Hopefully other members will chime in with their suggestions.