GMAC Bank recently rebranded itself as Ally Bank.  I’m not sure if the makeover was a result of the bailout of the banks, or the bailout of GM (or perhaps, both).  The bank still offers some of the best rates available on Certificates of Deposit.  They also offer a 9-month CD that has no early-withdrawal penalty, as pointed out by a reader at IndependentBeginnings.  That’s the first I’ve heard of such an offer.  A no-penalty CD is a perfect place to stash an Emergency Fund.

I’ve kept my Emergency Fund at either E-Trade or ING.  I established electronic transfer between the two accounts.  Periodically (every month or two) I check which is paying the higher rate, and I transfer funds accordingly.

Presently, both E-trade and ING are paying a rate of about 1.4%, while the Ally CD pays 2.47%.  That might make it worth opening an Ally account.

Of course, Ally Bank is FDIC insured, which guarantees your deposits up to $250,000.

Where do you keep your Emergency Fund?