So, my wife and I do a pretty good job of budgeting and saving for things, which means we have a lot of cash laying around. Between a $15k emergency fund, savings for car replacement and repairs, appliance replacement and repairs, vacations, etc., we currently have north of $35k just sitting in the bank. We've moved a lot of it into a money market savings account, which is at least generating a 1% return (far better than the .07% or whatever on the checking account).

Unfortunately, this feels a bit like throwing money away. If inflation is above 1% (and, thankfully, it's been low lately), we'd be losing hundreds a year.

Are there better things to do with all that excess cash, while still keeping it pretty liquid? I've used I bonds in the past for this purpose, where you at least get the security of knowing your money will keep pace with inflation... Are there better alternatives?

So, my wife and I do a pretty good job of budgeting and saving for things, which means we have a lot of cash laying around. Between a $15k emergency fund, savings for car replacement and repairs, appliance replacement and repairs, vacations, etc., we currently have north of $35k just sitting in the bank. We've moved a lot of it into a money market savings account, which is at least generating a 1% return (far better than the .07% or whatever on the checking account).

Unfortunately, this feels a bit like throwing money away. If inflation is above 1% (and, thankfully, it's been low lately), we'd be losing hundreds a year.

Are there higher return places to put all that excess cash, while still keeping it pretty liquid? I've used I bonds in the past for this purpose, where you at least get the security of knowing your money will keep pace with inflation.

Is there a better alternative than an I bond to earn a higher return and still remain liquid without a significant increase in risk?