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

There are better places than others to store your $40,000 emergency fund in today's economy. BanksPhotos/ 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 be better served avoiding. Below, we'll examine all four options in detail. See how much interest you could be earning on your money with a top savings account here . …