I think in situations like this where you can earn a little extra on a time deposit, perhaps the most important thing is to be truly honest with yourself about what you might need, and what you can afford to leave alone.
When "wishful thinking" sneaks into the picture, I have found I run the risk of not making extra, but instead incurring penalties.
Yes fair comment, I do like a substantial amount of cash fully liquid, as in 5 figures.