Build a financial safety net for unexpected expenses
An emergency fund is money set aside to cover unexpected expenses or financial emergencies, such as medical bills, car repairs, job loss, or urgent home repairs.
Having an emergency fund prevents you from going into debt when unexpected situations arise and provides peace of mind knowing you're financially prepared.
Recommended minimum for most people
Ideal for single-income households
For high-risk situations or entrepreneurs
Earns interest while remaining easily accessible. Best option for most people.
Slightly higher interest rates with check-writing capabilities.
Don't keep emergency funds in stocks, bonds, or accounts with penalties for early withdrawal.
Begin with $1,000, then gradually build to your target.
Set up automatic transfers from checking to savings.
Deposit tax refunds, bonuses, or gifts into your emergency fund.
Reduce non-essential spending and redirect savings to your fund.