<prompt> Human: Hello rpersonalfinance . I am a 23 year old graduate student, with about 40k in student loans. I currently have 3 CC that are all paid off and I have started paying off some student loans 200mo, they are deferred while I am in school, so I want to get rid of the accrued interest.I have some extra money in my checking and a savings that was opened with my checking that has a couple hundred bucks and I would like to make it into an emergency fund that I can live off a few months should something happen. Total amount is in the 4-5k range.So with this 4-5k, would it be smart to put it towards a CD, that I can withdraw from if needed such as this ally bank one and will grow at .9 or is there any better options?  <response>: Really, your e-fund shouldnt be seen as an investment, it should be considered insurance. Yeah, therell be opportunity cost, but at least your ass is covered.Also, regular Ally savings account is about 1 now, probably beats out your .9 CD. 