A. Every family should have 3-6 months emergency fund because life happens. There are four choices you can consider, each comes with its advantages and disadvantages:
1. Credit Unions
Credit unions tend to have higher interest rates and lower fees than banks, but hopefully you live near one or qualified to open a Credit Union account.
2. Big Banks
Big banks tend to encourage automatic saving plans, and its fee schedules tend to be more transparent, but the drawbacks are big banks typically charge higher fees and offer lower rates, as they do offer great convenience.
3. Small Local Banks
Small local banks charger less fees and impose lower minimum requirements compared with big banks, but their network is more limited.
4. Online Banks
Online banks tend to be aggressive in acquiring new customers, but one has to be mindful of their fees. For example, if you don't use the online bank's service for 6 months, you might find a $10 a month charge!