Educational Article
Where Should I Keep My Emergency Fund?
It’s important to keep your emergency fund in a safe and easily accessible account.
The main purpose of an emergency fund is to give you a pot of money to pull from when an unplanned expense pops up. That’s why it’s important to keep this money:
- Easily accessible
- Safe and secure (no risk to the principal amount)
- Separate from your everyday checking (this helps you avoid dipping into it for daily needs)
Key Takeaway: A savings or insured money market deposit account are good options for your emergency fund.
Tip from Steve Georgoulakis, CFP®
It’s tempting to squeeze out a larger return on your emergency fund by investing the money into something with a little more risk than a savings account or money market. However, this money is for emergencies, so focus on the return of your money, not a return on your money.