What is an emergency fund?
An emergency fund is money set aside for unplanned, important expenses rather than routine spending. Examples can include urgent repairs, unexpected travel, medical costs or a temporary loss of income.
How much should you save?
There is no universal amount. A useful target depends on essential monthly expenses, income stability, household responsibilities, insurance coverage and access to other resources.
Build it gradually
Choose an initial target, automate contributions where practical and increase the reserve over time. Even a smaller buffer can reduce reliance on expensive borrowing when something unexpected happens.
Where to keep it
Emergency money is generally intended to be accessible when needed. Consider liquidity, safety, fees and any restrictions when deciding where to hold it.
Use the Savings Calculator to model recurring contributions toward a target.
This guide is general educational information and does not recommend a particular account, institution or savings target.