Where to keep a $40,000 emergency fund right now (and where not to)

MoneyWatch: Managing Your Money Where to keep a $40,000 emergency fund right now (and where not to) We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Matt Richardson Matt Richardson Sr. Managing Editor, Managing Your Money Matt Richardson is the senior managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance. Read Full Bio Matt Richardson May 26, 2026 / 2:58 PM EDT / CBS News Add CBS News on Google There are better places than others to store your $40,000 emergency fund in today's economy. BanksPhotos/Getty Images While saving up a large, five-figure amount of money in the inflationary economic climate of recent years was certainly challenging, savers did have one factor working in their favor. Higher interest rates on everything from high-yield savings to money market accounts and certificates of deposits (CDs) helped these savers boost their bottom line in a way that was simply unachievable in the ultra-low rate environment many experienced at the start of the decade. But now, years later, knowing where to store a large sum such as $40,000 is arguably as important as knowing how to build it. And, if you're looking to keep this money in an emergency fund, the location is even more important.The reasons for needing an emergency fund in today's economy, too, are pronounced. With inflation now at its highest level in three years, elevated interest rates making borrowing more expensive and U.S. wage growth lagging, it's critical that your $40,000 be stored in both an accessible and profitable location. But only some savings accounts can accomplish both goals. Right now, there are actually two clear choices for where to keep a $40,000 emergency fund – and two where savers may b...