Mellody's Mail: Emergency Savings Fund

The investment return in a money market fund can be slightly higher than a bank's money market account, but the money invested is not insured. Despite the absence of the FDIC backing, this is my preferred vehicle for an emergency savings account because you cannot access your account through an ATM.

However, it is important to invest in a money market fund with a proven track record. You want to avoid money market funds which advertise their "high" rates of return as this is one fund account where you absolutely do not want your money to be at risk.

E-mail Mellody with your personal finance questions.

Mellody Hobson, president of Ariel Capital Management (arielmutualfunds.com) in Chicago, is "Good Morning America's" personal finance expert. Ariel associates Matthew Yale and Aimee Daley contributed to this report.