My little nest egg has been happily living with Paypal for the last 6 months. Unfortunately, since it is in a Money Market Fund, the interest rate fluctuates and now it has gone down from 5.o4 to 4.73%. On the other hand, my credit union is now offering a special 7 month certificate of deposit. I don't like having my money tied up for 7 months but really, I have a job and I can pay my bills and I am not going to lock all of it up. Plus I don't have any immediate plans for the money. I want to use it to dig a well, or build a house or pay off my mortgage when I get enough saved.
My emergency fund will stay in Paypal so I can use it, but I hope I never have to. It is my small emergency fund, the one that can support me for 5 months if I am living in my RV for only $600 a month. If I have to support my house too I would have to have a much larger fund to cover $700 for myself and utilities plus $800 for my mortgage. I used up most of my emergency fund last year when I was laid off and I was getting my house ready to rent out. I didn't know at the time that I would only be able to rent out my house Jan, Feb, and Mar. It's a good thing I found a job last December. I did collect some unemployment payments too so that helped with the mortgage. I hope I never have to do that again.