<prompt> Human: My wife an I combined make around300k living in a low-mid cost of living city. We have a 15 year mortgage at a 3.325 rate with a monthly payment of around 2500, but we put in around 4k a month. We invest around 8k a month, and spend the rest.Right now, our emergency fund is quite large. We have around 50k on it, which is well over 6 months expenses. We were thinking of lowering it to 30k, which would be about 6 months, but it still seems like a lot to just be sitting there. My questions are as follows:Would it be better to use the 20k to pay down the house, or invest? I know investing tends to have better returns, but a guaranteed 3.325 sounds pretty good in this volatile market.What should we do with our emergency fund? 20k seems high and our savings account is pretty low yield. I was thinking about splitting it in two, keeping 10k in the savings account and putting 20k into municipal bond funds with Fidelity Im thinking a mix between intermediate and short term to limit interest rate risk. Is this a good idea? If we desperately need the money, we can always withdraw, but our cash flow and credit limit is enough that I think we would still be safe without doing that.Assistant: Get an online savings account for better interest rates.In my opinion, putting your e-fund in invetsments is a bad idea. You are at risk of losing your investments, paying high taxes on short term gains, and if you needed your efund because the economy took a tumble and you lost your job, most likely you investments will have dropped as well. Not worth the risk for a few extra taxable points to meHuman: We have a fairly high tax rate, which is why we were planning on putting them in municipal bonds which have tax-exempt dividends. For short and intermediate term bonds, the risk doesnt look too high. Biggest drop I saw was 5 over two years.  <response>: You know what to do, and this sub is not the right perspective to make the most money minus risk. People are so risk adverse with this ideology that it prevents people from making reasonable decisions. A bond fund would be a perfectly acceptable use of this 20k. Most brokerages have no-commission funds and the money is liquid, you simply go on the platform, sell your shares, and transfer the funds. You have it in 1-3 days. There is nothing that could come up you cant pay with a credit card. 