Most money market accounts in the U.S. pay less than one percent. I get what you are saying, but I have to disagree with your thinking.
For many people it is a struggle to save for an emergency fund. They work hard for their money and sacrifice to save. Why let that money just sit there? Money should work just as hard for you as you do to make it.
Sure, it is not a lot now. But, eventually, rates will rise. Not a bad idea to establish the habit of having an account. Besides, every little extra bit is a big deal to many families.
Great advice in the article and here Sandra. I made a hiding place out of an old book by hallowing out a section in the middle and gluing the outer edges of the pages shut. That's for just a little cash on hand. The larger emergency fund is in savings. I hadn't considered money markets. I will look into this. Thank you.
Sandra. I hear you, and that's good advice for people living permanently within a single currency area. But not otherwise. I am one of those who suspects there are serious currency problems just down the road, including currency-controls. I am old enough to remember when currency-controls existed in Australia and Britain. Then, it made sense to have money beyond the reach of those nations' authorities. I think the limit was 50 pounds, for British people who travelled outside the country. PARAGRAPH HERE; I DON'T KNOW HOW TO MAKE PARAGRAPHS ON THIS SITE!
It also may be prudent - depending on one's plans, and one's situation - to hold money in different currencies. My wife and I are retired, so we're not tied to jobs - and that colours my thinking. But there may be others in this forum who are in the same situation. (I've no idea!)
When I wrote about emergency funds, I was thinking along the lines of an unexpected repair or doctor's bill or a job loss. It is true that in the United States we have a stable currency. We, also, only use one type of currency.
I look at the issue of currency wars in a different context as emergency funds. In regards to currency problems, I would definitely agree with your belief in keeping several sources of currency at home. Perhaps gold coins too. As Russia and Switzerland have proven, currency can devalue and fluctuate within a very short period of time. You want to have assets on hand in those cases.