If you have a savings account, you already know you’re not getting much interest, even with so-called high yield accounts. Have you ever thought of using a Roth IRA as your emergency fund?
You can borrow your Roth IRA contributions at any time without penalty. To note, contributions is money that you invest in your IRA. The 2012 limit for contributions is $5,000.00 ($6,000.00 if you are 50 years of age or older). However, earnings is money that you earn from investments made through your IRA. You are subject to a 10% penalty if you withdraw earnings.
The major benefit for opening an IRA is that your money is earning more for you than a typical savings account. Although, typically an IRA is used for after you retire, so whatever money you take from it now, won’t be there later. Furthermore, even if you replace the money you borrow, the time it takes to do that is time that it’s not earning. See an example here.