How to Keep Your Emergency Fund Safe

How to Keep Your Emergency Fund Safe, Accessible and Away From Temptation

Georgina Tzanetos   Fri, August 27, 2021,

Keeping extra money around in cash is always a good idea — but it depends on where you keep it.  The old under-the-mattress strategy is never a good idea and with the ease of modern-day banking, a traditional savings account might not be as well.

Banking apps can see your hard-earned savings transferred into an active checking account with a few swipes, and the money used for things other than you intended. A traditional savings account can be useful for things like saving for a home, travel or college savings, all of which can ebb and flow with changing goals and circumstances.

One thing that should never be touched though is a true emergency fund, the kind of money you will need if, let’s say, a global pandemic all of a sudden upends world order as you know it and you need sustained cash.

A good answer is a high-yield savings account. Its biggest benefit — a higher interest rate than a traditional savings account — is not the only reason opening one up is a good idea. High-yield savings accounts are the only accounts of their kind where money is almost as liquid as a regular savings account, but more restricted.

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https://finance.yahoo.com/news/keep-emergency-fund-safe-accessible-114211592.html