Using Certificate of Indebtedness (C of I) Account For Cash Portion

[TripleB]

Could one use the TD C of I account as a part of the cash portion of a PP? I wouldn't use it for any huge proportion of the cash asset, since it will always yield 0% and eventually TBills will yield more. However, if the C of I account is 100% secure as TBills, and since it's 0% there is no taxable event occuring, it seems reasonable that one might keep 1 to 2 months of their emergency fund held in the C of I account, and then allocate that from your cash portion of the PP.

I like to keep my emergency fund and my PP as one whole entity, otherwise I find myself too cash-heavy, since my total portfolio isn't significantly greater than a 12-month living expense emergency fund.

One could argue that once Vanguard reopens the Treasury MMF, you could just keep the "Emergency Fund" in there, and get check writing abilities from the MMF or ACH it to a checking account. And even though you pay tax on interest, you are gaining more than 0% as compared to the C of I.

However, if we are talking about using the "cash" portion for protection from a global financial meltdown, wouldn't TD's C of I be safer than VG? Even though VG's MMF is backed by TBills, it might be temporarily frozen or require a waiting period for redemptions if everyone wants to withdraw their money at the same time, and the underlying TBills dont mature for another couple weeks on average.

Then again, if things are really that bad, I wouldn't be able to use the C of I money, because if I ACHed it to my bank/credit union, then they would immediately "steal" the money for other uses/customers like they presumably did with my High Yield Savings account, otherwise I wouldn't have needed to touch the "emergency" C of I account anyway. Since I can't get to the C of I money without using a bank as an intermediary, then it's worthless in a global meltdown.

The solution would seem to be to just hold physical paper currency for those 1 to 2 months living expenses, also earning 0%.