<prompt> Human: Hey all. Longtime lurker of PF but never had anything worthy of its own post. I recently started working on a new way to structure my emergency fund and have yet to find anyone else on the web doing something similar. I wanted to get some feedback from some other like minded folks and this seemed like the best place to get some input. This crosses into some macro econ investing topics so any input from someone well versed in those topics would be greatly appreciated as well.BackgroundI am 25 - and have always been more of a saver than spender. Im also extremely risk averse. After doing some research on the web and finding this sub I came to understand the importance of keeping a sizeable emergency fund of 3-6 months salary to fall back on. Post college, while living with my parents to save on costs, I was able to save up about 20,000 in an emergency fund in addition to a checking account front loaded with all current-month expenses. I have a job in the financial sector, so I was able to get some on the job type working knowledge with investing. With that in mind, I came up with this strategy oriented to someone like myself. StrategyWhen I got my first job out of college, my employer set me up an account with Fidelity to manage my 401k. Not here to shill for Fidelity; I have never used another brokerage and dont know if doing this someplace else is any moreless effective. That said, Fidelity allows you to buy new issue treasury debt commission free. They also have a feature that allows you to automatically repurchase treasury bondsbills once one of yours expires. As you may or may not know, the treasury issues new 4-week bills just about every Monday. My strategy as an alternative to using a high yield online savings account for my e-fund is to take my 20,000, divide in into 4, and purchase 5,000 worth of 4-week, zero-coupon T-bills at one week intervals, opting into the auto-roll feature. ProsI live in a state with high state income taxes, so by using federal treasuries I am shielding my emergency fund from state income taxes. By splitting my e-fund into fourths, I will have interest income coming in 4 separate times per month. Because we are in a rising rate environment, using short term treasuries renewed weekly will expose me to the freshest new high rates faster than most savings accounts usually react to rate hikes. Because Im opting to use individual bonds and holding to maturity, I am reducing the risk of principal loss that one might find with a short term treasury ETF or mutual fund in a rising rate environment. I believe the difference between a 1 month t-bill and an FDIC insured savings account is negligible from a general safety credit quality of investment standpoint. ConsLess liquidity. If I were in some kind of life or death emergency and needed cash, pronto, Id be at the mercy of waiting until the market opened on a business day to sell off the bonds for quick cash. If this were to happen, I have a 5000 credit card limit, a 3000 personal line of credit at a local credit union, and a few hundred in cash in a safe. TL;DRAny downside to auto-repurchasing 4-week US treasury bills at weekly intervals in my brokerage account as an alternative to an emergency savings fund in a traditional bank savings account? Thanks for your consideration. Any input would be greatly appreciated.  <response>: I dont think its a particularly bad approach, although I dont think the gains here outweigh the negatives with liquidity.If I understand it correctly, you are doing this to save about 7 state income taxes on 1.45. On 20,000 this amounts to...20.30 annually. To me, this is far too little to sacrifice any degree of liquidity. 