Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

Where to park money while saving for a car
I would split the savings as you may need some of it quickly for an emergency. At least 1/2 should be very liquid, such as cash or MMA/Checking.  From there, look at longer term CDs, from 30 day to 180 day, depending upon your situation.  Don't be surprised if by the time you've saved the money up, your desire for the car will have waned.  How many years will it take to save up enough?  2? 5? 10?  You may want to review your current work position instead, so you'll make more and hopefully save more towards what you do want. Important: Be prepared for the speed bumps of life. My landlord sold the house I was renting out from under me, as I was on a month-to-month contract.  I had to have a full second deposit at the ready to put down when renting elsewhere, as well as the moving expenses. Luckily, I had done what my tax attorney had said, which is "Create a cushion of liquid assets which can cover at least three months of your entire outgoing expenses."   The Mormon philosophy is to carry at least one year's worth of supplies (food, water, materials) at all times in your home, for any contingency. Not Mormon, not religious, but willing to listen to others' opinions. As always, YMMV.  Your Mileage May Vary.