<prompt> Human: I have an Emergency Fund of 10,000 sitting in a Capital One Savings account earning .85. Ive read a few articles lately that recommend investing your emergency fund, rather than having it just sitting in a savings account. I think this might be an approach Im interested in exploring. I do like the idea of having liquid cash available for Semi-Emergencies. For example, my daughter totaled her car a few years back. She only had Liability, so she was out a car and needed a new one. I loaned her the money for a user car. I used my emergency fund, knowing that I could have her take out a real loan if necessary if something came up. A year later it was paid back. So I was thinking of investing 5000 and keeping 5000 in a liquid savings account for easy access for big life events. My question is Is that a good strategy Would you invest in a index fund with higher riskreward or something like a target 2015 fund with lower riskreward. tl;dr; How would you invest your 10,000 emergency fund to allow occasional easier access of some of the funds?EDIT: Im adding some surveys from Bogleheads with some interesting Emergency Fund FactsWhen was the last time you used your Emergency Fund? N38, 50 never.What fraction of your EF did you use? N57, 70 never used, 23 less than 15What did you use your EF for? N105, 70 never, job loss 11  <response>: An emergency fund is insurance, not an investment. 