Where to Keep Emergency Savings
It’s usually best to keep emergency savings in a bank or credit union savings account. These types of accounts offer easier access to your money than certificates of deposit, U.S. Savings Bonds, or mutual funds. Though these are useful tools for long-term saving, they are not ideal for an emergency fund that you may need access to more quickly
But not too quickly. Keeping your money in a savings account makes it much less likely that you will use these savings to pay for everyday, non-emergency expenses. That’s why it is usually a mistake to keep your emergency fund in a checking account.
You may well need at least $100 to open the savings account and a $200 minimum balance to avoid monthly fees. In most areas, however, there are several financial institutions with lower minimums. Also, banks and credit unions may waive the minimums if you have other accounts at that institution. Your local America Saves campaign can help you find a participating financial that offers
low- or no-minimum balance savings accounts.
Learn more:
Emergency Savings: Why you should start saving for emergencies
Savings Calculators
National Campaigns
Videos
- Holly Petraeus on Military Saves Week
- Tax Saving Tips and Savings Bonds
- Cindy Hounsell on Why Women Need to Save More for Retirement
- Asst. Sec.of Labor Borzi endorses America Saves