What should I put for liquidity needs?

Short-term vehicles, such as Certificates of Deposit (CDs) and money market funds, offer a secure and accessible means of storing savings.

Savings are a crucial aspect of personal finance, ensuring financial stability and preparedness for unforeseen circumstances. These funds are designated for liquidity needs, catering to short-term expenses and emergencies.

It is essential to maintain a sufficient amount of savings to cover expenses over the next few years, ensuring financial security during unforeseen events.

CDs provide a fixed interest rate for a specified period, ensuring a predictable return on investment. They are ideal for individuals seeking a low-risk option for their savings.

Money market funds, on the other hand, offer a higher degree of liquidity, allowing investors to withdraw their funds with ease. These funds invest in short-term debt securities, providing a stable return with minimal risk.