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Most financial advice says “save 3-6 months of expenses.” That’s a starting point, not a complete answer. How much you actually need depends on your job security, number of income earners, and fixed monthly obligations. This guide shows you how to calculate your specific target.

The Basic Formula

Monthly essential expenses × number of months = emergency fund target

Essential expenses are what you must pay to keep your life running: housing, utilities, food, transportation, insurance, and minimum debt payments. Not Netflix. Not dining out. Not gym memberships.

Emergency Fund Calculator Table

Monthly Essential Expenses	3-Month Target	6-Month Target	9-Month Target
$2,000	$6,000	$12,000	$18,000
$2,500	$7,500	$15,000	$22,500
$3,000	$9,000	$18,000	$27,000
$3,500	$10,500	$21,000	$31,500
$4,000	$12,000	$24,000	$36,000
$5,000	$15,000	$30,000	$45,000
$6,000	$18,000	$36,000	$54,000

How to Calculate Your Monthly Essential Expenses

Add up only these categories:

• Rent or mortgage payment (including taxes and insurance if escrowed)
• Utilities: electric, gas, water, internet, phone
• Groceries (not restaurants)
• Transportation: gas, car payment, car insurance, transit pass
• Health insurance and any regular prescriptions
• Minimum debt payments: student loans, credit cards, personal loans
• Childcare or other non-negotiable obligations

Leave out anything discretionary. The point is: if you lost your income today, this is what you need to cover to keep the lights on and stay housed.

How Many Months Do You Need?

Three months is the minimum. Six is the conventional target. The right number for your situation:

3 Months Is Probably Enough If:

• You have a very stable job (government, tenured, unionized)
• You have two income earners and one could carry expenses alone
• You have other liquid assets (taxable brokerage) you could access
• Your industry has low unemployment and you could find work quickly

6 Months Is Right If:

• You’re a single-income household
• Your industry is somewhat volatile
• You’re a homeowner (repairs happen)
• You have one or more dependents

9+ Months Makes Sense If:

• You’re self-employed or freelance
• Your income is variable or commission-based
• You’re in an industry with frequent layoffs
• You’re the sole income for a family

If you’re self-employed or working with a variable income, savings can move slowly. Our guide on personal loans for low income earners covers which lenders work with irregular or non-traditional income — useful to know while your fund is still growing.

Where to Keep Your Emergency Fund

Your emergency fund has one job: be there when you need it. That means:

• High-yield savings account: Best option. Earning 4%+ while staying fully liquid. No risk to principal.
• Money market account: Similar to HYSA, sometimes includes check-writing. Also solid.
• Not: The stock market. A 30% market drop in the same month you lose your job is exactly when you’d need to sell — at the worst time.

For a step-by-step guide to actually building the fund, see how to build a 6-month emergency fund on any budget. For more context on how much to target, see our guide on how much you should have in an emergency fund.

Building Your Emergency Fund: Monthly Savings Target

If you need $18,000 and currently have $3,000, you need $15,000 more. How long will it take?

Monthly Savings Amount	Time to Add $15,000
$200/month	75 months (6.3 years)
$300/month	50 months (4.2 years)
$500/month	30 months (2.5 years)
$750/month	20 months (1.7 years)
$1,000/month	15 months (1.25 years)

Open a dedicated savings account for your emergency fund — separate from your checking — to avoid accidentally spending it. Automate a fixed transfer on payday so you never see the money before it goes in.

To track your progress toward your specific target, the Emergency Fund Tracker on Etsy shows your running balance, monthly contributions, and a visual progress bar toward your 3-, 6-, or 9-month goal.

Should You Prioritize Emergency Fund or Debt Payoff?

Most advisors recommend building a $1,000–$2,000 starter emergency fund first, then aggressively paying down high-interest debt, then building the full 3–6 month fund. Paying off 20% credit card debt while keeping $20,000 in savings earning 4% is inefficient — the math favors attacking the debt.

Exception: if your job security is low or you have dependents, build the full emergency fund first regardless of debt rates.

If a true emergency hits before your fund reaches its target, an emergency personal loan can provide same-day or next-day cash as a short-term bridge — though interest costs make this a last resort, not a substitute for a funded emergency account.

Key Takeaway

Calculate your actual essential monthly expenses. Multiply by your target months. That’s your number — not a generic “$10,000” or “three months of income.” The more specific your target, the easier it is to plan toward it.

Where to Keep Your Emergency Fund

Your emergency fund has one job: be accessible immediately when you need it. That means it cannot be in an investment account, a CD that locks your money, or a physical location. Here is the hierarchy of best options:

High-Yield Savings Account (Best Option)

A high-yield savings account at an online bank is the standard recommendation for emergency funds. You earn 4.00%–4.50% APY (versus 0.01% at most traditional banks) while keeping your money liquid. Online banks like Ally Bank and Marcus by Goldman Sachs make it easy to transfer to your checking account in 1–2 business days.

The main limitation: federal regulations typically limit you to 6 withdrawals per month. For a true emergency fund, this is almost never a problem.

Money Market Account

A money market account is similar to a high-yield savings account but often comes with check-writing and a debit card for even faster access. Rates are competitive (4.00%–4.50% in 2026). The trade-off is a potentially higher minimum balance requirement.

See our money market vs CD comparison to understand which savings vehicle fits your emergency fund best.

What to Avoid

• CDs: Early withdrawal penalties mean you may lose interest — or more — if you need the money before the CD matures
• Investment accounts: Market downturns often coincide with job losses. You don’t want to sell investments at a loss to cover an emergency
• Physical cash: No interest, risk of theft or loss, and difficult to use for large expenses
• Your checking account: Keeping all cash in checking makes it too easy to spend and you miss out on interest earnings

Refinancing can save you tens of thousands of dollars over the life of a mortgage — or it can cost you money if you do it at the wrong time. The key question isn’t whether rates are lower. It’s whether you’ll stay in the home long enough to break even on closing costs.

The Refinance Breakeven Calculation

Every refinance has closing costs — typically 2%–5% of the loan amount. To determine if refinancing makes sense, calculate how long it takes to recoup those costs through monthly savings.

Breakeven Formula:

Closing Costs ÷ Monthly Savings = Months to Break Even

Example

Scenario	Numbers
Current rate	7.25%
New rate available	6.25%
Loan balance	$320,000
Current monthly P&I	$2,183
New monthly P&I	$1,973
Monthly savings	$210
Estimated closing costs	$8,000 (2.5%)
Breakeven period	$8,000 ÷ $210 = 38 months (3.2 years)

If you plan to stay in the home for more than 3.2 years, this refinance makes financial sense. If you’re likely to move within 2 years, the closing costs outweigh the savings.

Breakeven by Rate Drop and Loan Balance

Loan Balance	Rate Drop	Monthly Savings	Closing Costs (2.5%)	Breakeven
$200,000	0.5%	~$60	$5,000	83 months (6.9 yrs)
$200,000	1.0%	~$120	$5,000	42 months (3.5 yrs)
$300,000	0.5%	~$95	$7,500	79 months (6.6 yrs)
$300,000	1.0%	~$185	$7,500	41 months (3.4 yrs)
$400,000	0.75%	~$185	$10,000	54 months (4.5 yrs)
$400,000	1.5%	~$375	$10,000	27 months (2.2 yrs)

A 0.5% rate drop rarely makes financial sense unless you’re refinancing a very large loan. A 1.0%+ drop on a large balance is where refinancing becomes clearly worth it.

The Rate Environment in 2026

Mortgage rates peaked in late 2023 near 8% and have gradually moved lower. In 2026, 30-year fixed rates are running 6.25%–6.75% for well-qualified borrowers. Homeowners who bought in 2021 at 3% have no reason to refinance. Homeowners who bought in 2022–2023 at 7%+ may have compelling cases to refinance now.

The question most advisors recommend: if you can drop your rate by 1% or more and plan to stay 3+ years, run the breakeven math. If it works out, refinancing is worth exploring. See our full mortgage refinance guide for current rate benchmarks.

Types of Refinancing

Rate-and-Term Refinance

You replace your current mortgage with a new one at a lower rate or different term. No cash comes out. This is the most common refinance and what most of this guide covers.

Cash-Out Refinance

You borrow more than your current mortgage balance and take the difference as cash. Useful for funding home improvements or consolidating debt, but you’re adding to your loan balance and resetting your amortization clock.

Streamline Refinance (FHA/VA)

If you have an FHA or VA loan, you may qualify for a streamline refinance — a simplified process with less paperwork, no appraisal in many cases, and faster closing. You must already be current on your loan payments.

When NOT to Refinance

• You’re planning to move within 2 years. Closing costs will likely exceed savings.
• You’re far into your loan term. If you’re 20 years into a 30-year mortgage, refinancing into a new 30-year loan means 30 more years of interest even at a lower rate. You might pay more total interest.
• Your credit score has dropped significantly. A lower score means a higher rate on the new loan, potentially erasing the benefit.
• You’re rolling in fees. “No-closing-cost” refinances just fold the fees into the rate — you pay them, just more slowly.

How to Refinance: The Process

1. Check your current rate and remaining balance
2. Get quotes from 3+ lenders (online lenders, your current lender, a credit union)
3. Compare Loan Estimates — pay attention to APR, not just rate
4. Lock your rate once you’ve chosen a lender
5. Submit documents (pay stubs, tax returns, bank statements)
6. Schedule appraisal if required
7. Review closing disclosure and sign

The process typically takes 30–45 days. Your first payment on the new loan comes about 30–60 days after closing.

Where to Compare Refinance Rates in 2026

Getting multiple quotes is the most important step in refinancing. Rates vary by lender, and a 0.25% difference on a $300,000 loan is $450/year — or $13,500 over 30 years.

What to Compare

• APR (not just rate): The APR includes lender fees and is a more accurate comparison tool than the interest rate alone
• Closing costs: Ask for a Loan Estimate from each lender and compare line by line
• Rate lock terms: 30, 45, or 60-day locks — longer locks usually cost more
• Points: Some lenders quote lower rates in exchange for upfront points — run the math to see if paying points pays off given your breakeven timeline

Types of Lenders to Consider

• Online mortgage lenders: Fastest process, competitive rates, entirely digital — good for straightforward refinances
• Your current lender: Sometimes offers streamlined refinancing with reduced paperwork since they already have your documents
• Credit unions: Often have competitive rates and lower fees for members
• Mortgage brokers: Shop rates across multiple lenders on your behalf — useful if your situation is complex (self-employed, investment property)

If refinancing leads to significant cash-out equity, see our guide on best debt consolidation loans to understand when using home equity makes more sense than a personal loan for existing high-interest debt.

The Bottom Line

Refinancing makes sense when your rate drop creates monthly savings that exceed closing costs within a timeframe that matches your plans. The 1% rule (refinance if you can drop by 1%+) is a useful shortcut, but the breakeven calculation is what actually matters. Run the math for your specific numbers before making a decision.

If you’re deciding between Ally Bank and Marcus by Goldman Sachs, you’re comparing two of the best online banks in the country. Both skip the monthly fees and pay far more interest than traditional banks. But they serve different needs. This guide breaks down rates, features, and who each bank is actually best for in 2026.

Ally Bank vs Marcus: Quick Comparison

Feature	Ally Bank	Marcus by Goldman Sachs
High-Yield Savings APY	4.20%	4.40%
Checking Account	Yes (with debit card)	No
CDs	Yes (3 mo – 5 yr)	Yes (6 mo – 6 yr)
Personal Loans	No	Yes (6.99%–24.99% APR)
Monthly Fees	None	None
Minimum Deposit	$0	$0
ATM Access	43,000+ Allpoint ATMs	None (savings only)
Mobile App Rating	4.7 / 5	4.8 / 5

Savings Account: Marcus Pays More, But Ally Isn’t Far Behind

Marcus consistently posts one of the highest savings APYs among online banks. At 4.40%, it edges out Ally’s 4.20%. On a $20,000 balance, that difference is about $40 per year — real money, but not a dealbreaker for most people.

What matters more is what else you need. If you want a savings account only, Marcus wins on rate. If you want a full banking relationship — checking, savings, and CDs under one roof — Ally wins on convenience.

Checking Account: Ally Wins by Default

Marcus does not offer a checking account. Ally does, and it’s one of the better free checking accounts available. Ally’s checking comes with a Visa debit card, access to 43,000 Allpoint ATMs, and reimbursement of up to $10/month in out-of-network ATM fees.

If you want one bank to handle everything, Ally is the clear choice. You’ll want a separate checking account somewhere else if you go with Marcus.

CDs: Ally Has More Flexibility

Both banks offer competitive CD rates. Ally lets you choose No Penalty CDs, which let you withdraw early without a fee — a big advantage if rates keep moving. Marcus offers standard CDs with an early withdrawal penalty (90–270 days of interest depending on term).

Ally also offers a Raise Your Rate CD that lets you bump your rate once (2-year) or twice (4-year) if Ally raises its CD rates. Marcus doesn’t have an equivalent product.

Personal Loans: Marcus Is the Only Option

Marcus offers personal loans from $3,500 to $40,000 with no fees — no origination fee, no prepayment penalty, no late fee. Rates run 6.99% to 24.99% APR depending on your credit. Ally does not offer personal loans. If you want a loan from the same institution where you bank, Marcus is your only option between the two.

Who Should Choose Ally Bank?

• You want checking and savings in one place
• You need ATM access with your account
• You want CD flexibility (no-penalty or raise-your-rate options)
• You prefer a more full-featured banking experience

Read our full Ally Bank review to see how it stacks up on every feature.

Who Should Choose Marcus by Goldman Sachs?

• You want the absolute highest savings rate and nothing else
• You already have a checking account elsewhere
• You might need a personal loan at a competitive rate
• You want simplicity — a savings account with no distractions

How to Get Started: Opening an Account

Both Ally Bank and Marcus make account opening straightforward. Here is what to expect:

Opening an Ally Bank Account

1. Visit Ally’s website and select “Open an Account”
2. Choose between Savings, Money Market, CD, or Checking
3. Provide your Social Security number, address, and employment information
4. Link an external bank for initial funding — the process takes 2–3 business days

Ally accounts are FDIC insured up to $250,000. There is no minimum balance to open.

Opening a Marcus Account

1. Visit Marcus’s website and choose a Savings account or CD
2. Provide your personal and tax information during the application
3. Link an external checking account to fund your Marcus account
4. Marcus typically approves applications within minutes

Marcus does not offer a debit card, so all deposits and withdrawals flow through ACH transfers — standard 2–3 business days. Plan accordingly if you need quick access to funds.

Which to Open First

If you want one bank for everything: open Ally first. If your only goal is maximizing savings APY and you already have checking elsewhere: open Marcus. There is no penalty for holding accounts at both — many savers use Ally for their everyday checking and Marcus or Ally Savings for a high-yield bucket.

For a broader comparison of high-yield savings options, see our money market account vs CD guide to understand how different account types stack up in the current rate environment.

The Verdict

Marcus wins on savings rate. Ally wins on everything else. Most people are better off with Ally as their primary bank because it covers checking, savings, and CDs without needing a second institution. If you already have checking handled and just want to maximize savings interest, Marcus is a strong pick.

Either way, both banks beat traditional savings rates by a wide margin. Opening one of them is a better move than leaving money in a 0.01% account at a big bank.

Frequently Asked Questions

Is Ally or Marcus better for savings?

Marcus has a slightly higher savings APY (4.40% vs 4.20%), but both are competitive. The difference is small enough that convenience and features should drive your decision more than rate alone.

Does Marcus have a checking account?

No. Marcus is a savings-focused bank. You’ll need to maintain a checking account elsewhere if you choose Marcus.

Are Ally and Marcus FDIC insured?

Yes. Both Ally Bank and Marcus by Goldman Sachs are FDIC insured up to $250,000 per depositor per account category.

Can I have accounts at both Ally and Marcus?

Yes. Some people use Ally for checking and everyday savings, and Marcus for a higher-yield savings bucket. There’s no rule against banking with both.

Buying cryptocurrency for the first time feels complicated, but the actual process takes about 15 minutes. This guide covers exactly where to buy, how to do it safely, and what to avoid as a beginner.

Step 1: Choose an Exchange

A cryptocurrency exchange is where you buy and sell crypto. For beginners in 2026, two exchanges stand out:

Coinbase

Coinbase is the easiest starting point. It’s regulated, publicly traded, and holds crypto for you in an account that works like a brokerage. The interface is simple. You can buy Bitcoin, Ethereum, and hundreds of other coins. Fees run about 1%–1.5% per transaction depending on payment method.

Kraken

Kraken has lower fees (0.16%–0.26% for most trades) and a stronger reputation for security. It’s slightly more complex than Coinbase but still beginner-friendly through its “Kraken Pro” interface.

Both platforms are legitimate and widely used. Start with Coinbase if you want the simplest experience. Move to Kraken if you want lower fees once you’re comfortable.

Step 2: Create and Verify Your Account

All regulated exchanges require identity verification (KYC). You’ll need:

• A government-issued ID (driver’s license or passport)
• A phone number for two-factor authentication
• A bank account or debit card to fund your account

Verification takes 5–30 minutes. Enable two-factor authentication immediately after verifying — this protects your account from unauthorized access.

Step 3: Deposit Money

You can fund a crypto exchange account by:

• Bank transfer (ACH): Cheapest option, usually free. Takes 3–5 business days to clear but some exchanges let you trade before funds fully settle.
• Debit card: Instant, but fees run 1.5%–2.5%. Useful if you want to buy immediately.
• Wire transfer: Faster than ACH for large amounts. Fees apply.

Start with ACH to keep costs low. Use a debit card only if timing matters to you.

Step 4: What to Buy First

As a beginner, stick to the two largest cryptocurrencies by market cap:

Bitcoin (BTC)

Bitcoin is the original cryptocurrency. It has the longest track record, the most liquidity, and the widest institutional adoption. Most financial advisors who recommend crypto at all recommend starting with Bitcoin. You don’t need to buy a whole coin — you can buy $50 or $100 worth.

Ethereum (ETH)

Ethereum is the second-largest cryptocurrency. Unlike Bitcoin, Ethereum is also a platform for smart contracts and decentralized apps. It has more volatility than Bitcoin but also more use cases driving demand.

If you’re deciding between Bitcoin and other cryptocurrencies, our crypto vs stocks comparison breaks down the risk and return profiles to help you decide how crypto fits into your broader investment strategy.

How Much Should You Invest in Crypto?

Most financial advisors suggest limiting crypto to 5%–10% of your investment portfolio at most. Crypto is volatile — Bitcoin has dropped 50%+ from peak values multiple times. Only invest what you could afford to lose entirely without affecting your financial life.

A common beginner approach: start with $100–$500 to learn the mechanics before putting in meaningful money.

Step 5: Understand Wallet Security

When you buy crypto on Coinbase or Kraken, it sits in a “custodial wallet” — the exchange holds the private keys. This is fine for most beginners. The risk is exchange hacks or insolvency (what happened with FTX in 2022).

Hardware Wallets (for larger amounts)

If you’re holding $5,000+ in crypto, consider moving it off the exchange to a hardware wallet. A hardware wallet (like Ledger or Trezor) stores your private keys offline — no internet connection means no remote hacking risk. They cost $50–$150 and are the gold standard for crypto security.

The 12-Word Recovery Phrase

When you set up any non-custodial wallet, you get a 12 or 24-word recovery phrase. Write it on paper. Store it somewhere safe. Never store it digitally or share it with anyone. This phrase is the master key to your crypto — if you lose it, you lose your crypto permanently.

Common Beginner Mistakes to Avoid

• Buying meme coins or unknown tokens. Stick to Bitcoin and Ethereum until you understand the space.
• Trying to time the market. Most professional traders can’t consistently time crypto. Buy in small amounts over time (dollar-cost averaging) rather than all at once.
• Using borrowed money. Never buy crypto on credit or with money you need soon.
• Falling for giveaway scams. No legitimate person will ever ask you to send crypto first to receive more back.
• Not keeping records for taxes. Crypto is taxed as property. Every sale is a taxable event. Keep a log of what you buy and sell.

Crypto Taxes: The Basics

In the US, selling crypto for a profit triggers capital gains tax. If you hold for over a year, you pay long-term capital gains rates (0%, 15%, or 20% depending on income). If you sell within a year, you pay ordinary income rates. Keep records of every transaction. Most major exchanges export tax reports that connect to software like TurboTax or CoinTracker.

Getting Started

The easiest first step: open a Coinbase account, verify your identity, connect your bank, and buy $100 in Bitcoin. That’s it. Once you understand how the process works, you can decide whether to buy more, diversify into Ethereum, or explore other aspects of the crypto ecosystem.

Comparing Top Crypto Exchanges in 2026

The exchange you choose determines your fees, security, and the coins available to you. Here is how the major platforms compare on the factors that matter most for beginners:

Exchange	Best For	Trading Fee	Coins Available	US Available
Coinbase	Beginners, simplest interface	0.6% (simple), 0.4% (advanced)	200+	Yes
Kraken	Security-focused investors	0.26% maker / 0.16% taker	200+	Yes
Gemini	Regulated, NYDFS-licensed	0.5% (ActiveTrader)	50+	Yes
Robinhood Crypto	Stock + crypto in one app	Spread-based (no listed fee)	15+	Yes

Fee Structures to Understand

Most exchanges charge either a flat percentage per trade or a maker/taker model. For small purchases (under $500), the flat-fee model (like Coinbase Simple) is straightforward but expensive. Using the “advanced trade” or “pro” view on most platforms cuts fees significantly — from 0.6% down to 0.1%–0.4% — with no change in what you actually buy.

Security Checklist Before You Deposit

• Enable two-factor authentication (2FA) using an authenticator app, not SMS
• Verify the exchange is registered with FinCEN as a Money Services Business
• Check whether the exchange carries crime insurance for digital assets
• Never use a crypto exchange on public Wi-Fi without a VPN

Once you’ve bought crypto, see our comparison of Bitcoin vs Ethereum vs Solana to understand the trade-offs between the three most popular coins — so you know what you’re actually holding and why.

Money market accounts and CDs both pay more interest than regular savings accounts. But they work differently and serve different situations. This guide breaks down the key differences so you can decide which one belongs in your financial plan.

What Is a Money Market Account?

A money market account (MMA) is a savings account that typically pays higher interest than a standard savings account. It usually comes with check-writing and a debit card — limited to 6 transactions per month in most cases. Your money stays accessible. You can withdraw when you need to without penalty.

What Is a CD?

A certificate of deposit (CD) locks your money for a fixed term — 3 months, 1 year, 5 years, and many options in between. In exchange for that commitment, the bank pays a fixed, guaranteed rate. You can withdraw early, but you’ll pay a penalty (typically 90–180 days of interest for short-term CDs, more for longer ones).

Money Market Account vs CD: Side-by-Side

Feature	Money Market Account	CD
Typical APY (2026)	4.00%–4.50%	4.25%–5.00% (1-yr)
Access to funds	Anytime (limited transactions)	Locked until maturity
Rate type	Variable (can change)	Fixed for term
Early withdrawal	No penalty	Penalty applies
Minimum deposit	$0–$2,500 (varies)	$0–$1,000 (varies)
FDIC insured	Yes	Yes
Best for	Emergency fund, short-term savings	Money you won’t need for 6+ months

Which One Pays More?

In 2026, top CDs pay slightly more than top money market accounts. The best 1-year CDs are currently yielding 4.75%–5.00% at online banks. Top money market accounts are paying 4.20%–4.50%. The gap exists because you’re giving up flexibility with a CD — the bank compensates you for locking in.

Over a $20,000 deposit for one year:

• Money market at 4.30%: $860 in interest
• 1-year CD at 4.80%: $960 in interest

That’s $100 more per year in the CD. Whether that’s worth giving up access to your money depends on your situation.

When a Money Market Account Is the Better Choice

• Emergency fund. Your emergency fund must be accessible immediately. A MMA gives you high yield without locking your money.
• Short time horizon. If you need the money within 3–6 months, a CD’s early withdrawal penalty can wipe out the rate advantage.
• Rate uncertainty. If you think rates will rise, a variable-rate MMA lets you capture those increases. A CD locks you into today’s rate.

When a CD Is the Better Choice

• Saving for a specific goal. A vacation fund, car down payment, or home repair fund that you won’t need for 12–18 months is ideal for a CD.
• Protecting against rate cuts. If you think rates will fall, locking in a 5% CD today guarantees that rate for the full term even if market rates drop.
• You want a guaranteed return. CDs offer a fixed, guaranteed rate. MMAs can change at any time.

For help finding the best rates, see our roundup of best money market accounts and compare them against current CD rates.

No-Penalty CDs: The Best of Both Worlds?

No-penalty CDs let you withdraw your full balance (usually after a short holding period of 6–7 days) without a penalty. They typically pay slightly less than standard CDs — but more than most MMAs. If you find a no-penalty CD paying 4.50%+, it’s worth considering as an alternative to a money market account.

The CD Ladder Strategy

If you’re putting a large amount in CDs, don’t put it all in one term. Spread it across multiple terms — 3 months, 6 months, 1 year, 2 years. As each one matures, you can reinvest at current rates or use the cash. This gives you regular access to funds while still capturing competitive CD rates.

Where to Open a Money Market Account or CD in 2026

Online banks consistently offer the best rates on both money market accounts and CDs — often 8–10x higher than traditional brick-and-mortar banks. Here is what to look for when comparing options.

Best Money Market Accounts

When evaluating a money market account, look for:

• APY: Target 4.00%–4.50% from top online banks in 2026
• Minimum balance: Many top options have no minimum balance or low minimums ($1)
• Debit card and check writing: Most MMAs include both, subject to federal transaction limits
• No monthly fees: Reputable online banks waive maintenance fees entirely

Two of the most consistently competitive options are Ally Bank and Marcus by Goldman Sachs. Both offer high-yield accounts with no minimums, no monthly fees, and competitive APYs. See the full head-to-head in our Ally Bank vs Marcus comparison.

Best CDs

For CDs, focus on term length and flexibility:

• 1-year CDs: The sweet spot in 2026 — highest rates with a manageable 12-month commitment
• No-penalty CDs: Pay slightly less (usually 0.25%–0.50% below standard CD rates) but allow early withdrawal after a 7-day holding period — ideal if your timeline is uncertain
• Short-term CDs (3–6 months): Lower rates but useful for staging funds you know you will need soon

When comparing CD options, also check whether the same bank offers a competitive money market account. Consolidating both at one institution simplifies management without giving up rate competitiveness. Banks like Ally, Marcus, and Discover consistently rank well across both products.

Building Your Savings Strategy

A practical approach for most savers in 2026: keep 3–6 months of expenses in a high-yield money market account as your emergency fund, then move any surplus into a 1-year CD. As the CD matures, reassess whether rates justify renewing or shifting to a money market account.

If you haven’t yet determined how much you need in your emergency fund before locking money in a CD, our emergency fund calculator can help you find the right target based on your expenses and income stability.

Bottom Line

For money you might need — use a money market account. For money you definitely won’t touch — use a CD. Many people use both: MMA for their emergency fund and liquid savings, CD for savings goals with a clear time horizon. Both are insured, both beat inflation at current rates, and both beat traditional savings accounts by several percentage points.

Betterment, Wealthfront, and Vanguard Digital Advisor are three of the most popular robo-advisors in 2026. They all invest your money automatically in a diversified portfolio. But they have real differences in fees, features, and who they’re designed for.

Quick Comparison

Feature	Betterment	Wealthfront	Vanguard Digital Advisor
Annual Fee	0.25%	0.25%	~0.20% (net of fund fees)
Minimum Investment	$0 (basic), $100k (premium)	$500	$100
Tax-Loss Harvesting	Yes	Yes	No
Direct Indexing	Yes ($100k+)	Yes ($100k+)	No
Socially Responsible Portfolios	Yes	Yes	No
Human Advisor Access	Yes (0.40% premium)	No	Yes (included)
529 Plans	No	Yes	Yes
Cash Account	Yes (4.50% APY)	Yes (5.00% APY)	No

Betterment: Best for Flexibility and Goals-Based Investing

Betterment is the most user-friendly of the three. Its app is well-designed, and it lets you set up multiple goal buckets — retirement, house down payment, emergency fund — each with its own portfolio allocation. You can see exactly what you’re invested in and why.

Tax-loss harvesting is automatic at any balance. Betterment also offers a high-yield cash account (4.50% APY) and a checking account through a partner bank, making it a one-stop financial hub for some users.

Best for: Beginners who want a clean interface, goal-based investing, and the option to add a human advisor later without switching platforms.

Wealthfront: Best for High Earners Who Want Automation

Wealthfront’s standout features are its Path financial planning tool and its high-yield cash account (5.00% APY). Path runs Monte Carlo simulations on your financial data to project retirement scenarios — it’s more sophisticated than anything Betterment or Vanguard offers at this price point.

Wealthfront also offers 529 college savings plans and a portfolio line of credit (borrow up to 30% of your account value at low rates without selling). For accounts over $100,000, Wealthfront offers direct indexing — owning individual stocks instead of ETFs for better tax efficiency.

Best for: Higher earners with $50,000+ to invest who want sophisticated tax planning and financial projection tools.

Vanguard Digital Advisor: Best for Long-Term, Low-Cost Investing

Vanguard’s robo-advisor does one thing extremely well: low-cost, long-term investing in Vanguard’s own index funds. The all-in cost (management fee plus fund expense ratios) runs about 0.20% annually — the lowest of the three. If you invest $100,000, you pay about $200/year versus $250/year at Betterment or Wealthfront.

Vanguard Digital Advisor does not offer tax-loss harvesting or direct indexing. It also doesn’t have a high-yield cash account. The app is functional but less polished than competitors. You do get access to Vanguard’s certified financial planners for additional questions — a feature that usually costs extra elsewhere.

Best for: Investors who already trust Vanguard’s index fund philosophy and prioritize the absolute lowest fees over bells and whistles.

Tax-Loss Harvesting: Does It Matter?

Tax-loss harvesting sells investments that are down to capture a tax loss, then reinvests in a similar (but not identical) asset. The loss offsets capital gains or up to $3,000 of ordinary income per year. Vanguard Digital Advisor doesn’t offer this; Betterment and Wealthfront do.

Research suggests tax-loss harvesting can add 0.10%–0.77% of after-tax returns annually, depending on market volatility. At accounts under $50,000, the benefit is smaller. At $200,000+, it becomes meaningful.

Which Robo-Advisor Should You Choose?

See our full roundup of best robo-advisors for a broader comparison. But here’s a quick guide:

• You’re starting out with under $10,000: Betterment (no minimum, easiest interface)
• You have $50,000–$100,000 and want smart tax features: Wealthfront
• You want the lowest fees and trust Vanguard: Vanguard Digital Advisor
• You want a human advisor option within the same platform: Betterment Premium or Vanguard

Are Robo-Advisors Worth It?

If you’d otherwise leave your money in cash or pick random stocks, yes — robo-advisors are worth it. Automatic rebalancing, tax-loss harvesting, and disciplined diversification beat most individual investors’ DIY results over time. The 0.20%–0.25% annual fee is reasonable for what you get.

If you’re comfortable managing a simple three-fund portfolio yourself at Fidelity or Vanguard, you can do it for essentially zero cost. The robo-advisor fee buys you convenience and automation.

How to Get Started with a Robo-Advisor

Opening a robo-advisor account typically takes 10–15 minutes. Here is what to expect across all three platforms:

Betterment

Betterment has no account minimum for its basic plan. Go to Betterment’s website, create an account, set your goal (retirement, general investing, or a specific target), answer a short risk-tolerance questionnaire, and fund your account. Betterment invests your money automatically in a diversified portfolio of ETFs aligned with your goal. You can start with as little as $1.

Wealthfront

Wealthfront requires a $500 minimum investment. After creating an account, you connect your financial accounts to Wealthfront’s Path planning tool, which projects your retirement readiness. Wealthfront then builds a diversified portfolio tailored to your timeline and risk tolerance. Tax-loss harvesting begins automatically once your account is funded.

Vanguard Digital Advisor

Vanguard Digital Advisor requires a $100 minimum. You’ll need an existing Vanguard account or create one during signup. Vanguard invests in its own low-cost index funds and rebalances automatically. Setup takes slightly longer than the other two because Vanguard’s account opening process is more detailed.

One Important Note

Before moving money to a robo-advisor, make sure you have a liquid emergency fund in a high-yield savings account or money market account — ideally 3–6 months of expenses. Unlike a money market account, a robo-advisor invests in equities. That money will fluctuate in value, and you do not want to be forced to sell at a loss during a market downturn because you needed emergency cash.

See our emergency fund calculator to determine how much you should keep liquid before committing money to a robo-advisor or any investment account.

Bottom Line

All three platforms are legitimate, low-cost, and suitable for long-term investors. Betterment is the best all-around starter option. Wealthfront is the best for sophisticated tax planning. Vanguard Digital Advisor is the best for pure cost minimization. The worst choice is leaving your money in cash while you decide.