If its an emergency fund. You need to be able to take it when you need it. I would put it in a secure place like Marcus Savings accounts from Goldman & Sachs. It will give you 2.25% of Annual Percentage Yield. You could put also $10K in it and $10K on a 12 months Certificate of Deposit with Marcus with an APY of 2.70%. Zero risk it’s what you want. You need 6 months of salary after-tax in an emergency fund. $20K means that you make $3300 after tax, per month.
lol, 6-months of after tax salary is borderline impossible if you have student loans, and/or live in the Bay Area or NYC.
If you make $10k/mo after taxes, you’d be looking at $60k. Even if you could save $2500/mo (which is on the high end. That’s 25% of your after tax income) you’re looking at 2 years of saving to get there. That’s assuming you aren’t going on vacations or making any big purchases for 2 years. Realistically you can maybe do $2k a month, you’re looking at 2.5 years of solid saving to build that up, and that’s assuming you’re not putting anything into 401k, other investments, or paying down those student loans.
3 months is a more manageable, realistic figure for many of us. Even then, that’s tough if you still have student loans in the Bay Area or NYC.