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As true "emergency" money, consider a home equity credit line, if you are in a position to get one and currently have minimal credit debt. That way, you're "free" to invest your extra cash in the manner you're comfortable with.

Otherwise, I'd opt first for the I-Bonds, then either a regular or tax free MMF, dependent upon your tax situation. My third choice would be a short term bond fund.

HTH,
John
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