Keeping emergency fund in roboadvisor cash portfolio

Hi, it depends on the definition of emergency funds that you adopt. if your idea is to be able to wait for a few days to draw out your funds, then perhaps you can use the instruments as shared by fellow members. Remember, every investment comes at a risk unless the capital is guaranteed.

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Personally, I set aside rough 3 to 6 months of emergency funds and placed it in a higher interest rate bank account.

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Sometimes, in emergency, we may lack the clarity and time to carry out withdrawal from some portal etc. Bank withdrawal should be the fastest. I think I am more conservative in this area. 🙏🏻

I personally still keep my emergency funds in a bank, albeit a higher interest one (Standard Chartered Jumpstart 0.4%), mainly because of one reason, liquidity.

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As Benjamin said, it takes a couple of days (a day at best) to get those funds out from your robo to your bank account and when there is an emergency where you need the money urgently, which is what these funds are for, you wouldn't want to be stuck in a situation where you would need to worry about getting your money asap.

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I would suggest instead to use a robo cash portfolio for smaller short term savings (~1 to 5 years) where you can still grow your money at a faster rate and volatility wouldn't be much of an issue.

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For me, I started using Syfe's cash portfolio for exactly that purpose when I just started putting a portion of money aside from my internship pay to save. However, as I've learnt a lot more than what I did back then, I'm also slowly starting to move those savings into a crypto lending platform like Hodlnaut and earn interest in stablecoins (like USDC) where I can earn a much higher yield (12.7%) but still in a relatively less risky way.