Emergency Savings Accounts

An emergency fund provides you with a buffer against life's uncertainties.

It's not the most fun thing to save for but having an emergency fund to cover unexpected costs is essential to help ensure you don't fall into a dangerous financial situation. An emergency fund is a foundational component of a healthy personal budget and help provide you with peace of mind.

How much to set aside in an emergency fund

The ideal amount varies depending on personal circumstances, but here are some general guidelines:

• Standard recommendation: Most experts recommend saving enough to pay for three to six months' living expenses.
• Single-income households: Consider aiming for six to nine months' worth of expenses due to the increased risk of having only one source of income.
• Variable incomes: If you're self-employed or have an income that fluctuates, a larger fund (possibly up to twelve months' worth of expenses) can account for the additional income volatility.
• Minimal starting point: If these numbers seem daunting, start with a smaller, more achievable goal, such as $1,000, and build up over time.

Choose the right home for your fund

Where you store your emergency fund is pivotal, and it helps to have a balance between earning interest and having access to your money. Your emergency savings should be accessible but not so quickly that you're tempted to use it for non-emergencies. Some options to consider include:

• Traditional savings account
• Money market accounts
• Short-term term certificates

Tips for growing your Emergency Savings

• Start small. Don't overwhelm yourself. Begin with something small and set aside a few dollars from each paycheck, then re-evaluate after a few months and, if it feels doable, slowly increase the amount you're saving.
• Don't make excuses. It's easy to think, "I don't make enough money to save" or "I'm waiting for my tax return before I put money in savings". You can't accomplish a goal if you never start acting on it.
• Automate your saving. Set up automatic transfers from your checking account to your new emergency savings fund so it happens without having to think about it each payday. You can set up recurring transfers easily using online/mobile banking.
• Enroll in Savings Round-up. Use this free savings option to automatically save a little each time you use your debit card. Enroll now in online/mobile banking.

Open your emergency savings account online today or visit any of our branches to discuss the best savings plan for you and your budget.

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