This is the ideal way to handle your emergency fund, toss it in a high yield savings account with a different bank from your every day one, and then it's harder to tap into if you have a mild inconvenience. Between the high yield savings account and CDs that I keep about 1/3 of my emergency fund tied up in, my emergency fund is earning me about $500/year. Is that a life changing amount of money? Of course not! But it is enough that I can basically never touch my emergency fund and it should hold its value a bit above inflation indefinitely. And as a bonus it's all FDIC insured!