At what amount of money would it be dumb to throw into an HYSA as an emergency fund? (Above 5k, 15k, 20k, 50k?)

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We’re conservative so have 2 yrs

likesmart

We keep core expenses for a year + discretionary expenses (vacations, big ticket items) + potential expensive maintenance/replacement/repair around the home - in liquid cash in HYSA. Comes to about $80-90k

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For emergency related cash only? Usually I'd recommend 3-6 months expenses, with some even saving a year's worth. No way to know what that means to you (job security, kids, non-working spouse, house repairs, old car, etc). For some that could be 5k and for others it could be 50k.

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There is no objective number. An emergency fund is insurance, not something that needs to get the highest return. Save whatever makes you comfortable in liquid accounts like an HYSA. Invest the rest. There's no magic number where it starts to be dumb; it's all dependent on context.

likesmarthelpful

The general rule is to aim to have a 6 month fund but at the end of the day it’s just what are you comfortable with. Am I losing money keeping a years worth of expenses in the bank? Probably. But for me the peace of mind is worth it.

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I'm in the same boat

It's a personal decision, we do 1 year. Allocating some of the money on I bonds and T-bill ladders to get a better return than HYSAs.

Completely personal. If you have kids I imagine that changes things dramatically.

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