How far has your high yield MMA/Savings account dropped its APY in the last 6 months?

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I crafted up a list of high yield MMA and Savings accounts back in December showing the rates of the best MMA/Savings accounts out there and I chose UFB Direct as my Emergency Fund of choice. Unfortunately, (or maybe fortunately) they haven’t even received my initial test payment of $0.14 that I sent from my Bank of America account over a month ago. So I haven’t put any money into the account, which has dropped from 5.22% on the day I got it, to 5.21% the next day, 4,90% a week later, last week at 4.50% and when I logged on today, we’re sitting at 4.00%.

I’ve had enough. I know the economy is fighting off a recession, and the feds keep cutting the rate back, but I like my money to work for me! I know even at 4%, it is far better than the local branch offering 0.75%, so I can’t complain on that front, but I can make up for it by continuing to invest in my 401k and ROTH to maximum levels. We’re in a bit of a slow spell right now in the market, but don’t let it get the best of you. Especially if you’re young.

We’ve got time on our side, as every generation has its slump in the market. I’m not going to worry about it and just think of it in a “glass half full” mentality. Things will be looking up in the future, and I don’t plan on getting out of the market anytime soon. As long as I continue to get raises this should work itself out and I’ll be better off for it by buying in when the stock was low.

What is your horror story from your Emergency fund? How far has it dropped?

Filed Under: 401KCompensationDebtEmergency fundfinancial educationInvestingMutual FundsNet WorthPortfolioROTH IRA