Okay, so you're finally ready to get out of debt. Good for you! Just admitting that is a major step in the right direction.
As you begin your journey, though, something happens. You have to stay in the hospital for a week. Your brakes go out. You find out you need a new roof. These are major expenses that can ruin a financial plan...
...unless you have money set aside for emergencies.
We'll have more to say about emergency funds on this site in the future, but one thing you must decide is where that money is going to go. It needs to be liquid enough so you can get to it in an emergency, but you don't want to make 1% or less on the money either.
One possible place is HSBC's Online Savings Account. Personally, I don't use this one, but I am thinking about it. While interest rates change often, today (June 12) the account is at 5.05%. I'm willing to say that's probably more than you are making at your local bank!
The account has many good features. One of my favorites is free electronic transfer of money. Also, the account comes with a debit card, so getting to your cash in a real emergency is possible.
As with any account, please take the time to look over the information and choose the one that is right for your situation. If you don't see a feature that you'd like to have, send a question to the company.
There are many good places to put money for an emergency fund, and we hope to highlight some of the best here over the next few days, but HSBC has a good history of online banking. Check them out for more information...
...but more importantly, get started on that emergency fund!!!
HSBC Online Savings Account information page
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