WHERE SHOULD YOU SAVE YOUR EMERGENCY FUND?

An emergency fund is one of the most important building blocks of a strong financial plan. But once you've set a savings goal, the next question becomes: Where should you actually keep the money?

The key is finding a place that offers security, access, and just enough growth—without taking on unnecessary risk.

Here’s what to consider when choosing where to save your emergency fund.

Start with Safety and Liquidity

An emergency fund isn’t about growing your money—it’s about preserving it. That means choosing an account that keeps your savings safe and easily accessible. Emergencies don’t wait, so your money shouldn’t be locked up or exposed to market swings.

Money market accounts are one of the most popular options for this very reason. They provide stability, while still keeping your funds liquid in case of the unexpected.

Security Comes First

Think of your emergency fund as insurance, not an investment. You want a home for your money that offers confidence. Look for accounts that are FDIC- or NCUA-insured, meaning your balance is protected up to the allowable limits.

This is not the place to chase high returns or take risks. The goal is to make sure the money is there when you need it.

Earning a Bit of Interest Helps

While safety is the top priority, earning a little interest doesn’t hurt. A money market fund or high-yield savings account can help your emergency fund keep pace with inflation—without compromising access or security.

It won’t make you rich, but it adds up over time and makes your savings work a little harder for you.

Where You Can Open One

There’s no one-size-fits-all answer. Depending on your comfort level, here are a few common places to keep your emergency fund:

• Local bank: FDIC-insured and familiar, though rates may be lower

• Online bank: Often offers higher interest rates and easy transfers

• High-yield savings account: Offers better returns than traditional savings while keeping your funds fully liquid and insured

  
  

The right choice depends on how quickly you might need access, how much risk you’re comfortable with, and how actively you manage your finances.

It’s All About Confidence

At the end of the day, an emergency fund isn’t just about numbers—it’s about reducing stress and being prepared. Knowing that your money is preserved and within reach can offer a huge sense of confidence, especially during uncertain times.

Disclosure:

An investment in the Money Market Mutual Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.  Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. Money market mutual funds can have liquidity issues, the underlying fund may temporarily suspend the ability to redeem its shares if the underlying fund’s liquidity falls below required minimums because of market conditions or other factors. 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.