If you don't have an emergency fund, you need one! Dave Ramsey suggests a "baby emergency fund" of $1000 to cover unexpected emergencies. Once you have that initial $1000, you need to save 3-6 months living expenses for larger curves like unemployment, sickness, or any other unexpected events life may throw your way.
But where do you keep your funds? The funds need to be liquid (easily convertible to cash) and accessible (no stocks, bonds, or other investments). But if you're like me, they also need to be somewhat out of reach. Putting savings in a cookie jar will only result in a cookie jar raid every few weeks.
Right now, I'm using an online savings program with Capital One 360. I easily put my savings on auto-pilot by transferring funds from my local bank on a weekly/monthly basis. The money is available BUT it takes 2 business days to transfer back to my checking. So it's available but not for spur of the moment (made-up) "emergencies".
Currently, Capital One 360 is running a promotion giving you a bonus $25 if you open an online account with them! This is a great opportunity to set aside some money for a rainy day while earning some free cash!
Disclaimer: I currently have a savings account with Capital One 360. I have been very happy with the service and plan on continuing my account. If you (or anyone you pass this along to) signs up using this link, I will receive a small payment from Capital One 360 which will add to my personal emergency fund! So you are benefiting yourself and doing a good deed! Thanks!