Where to keep your emergency fund

One key recommendation from the world of personal finance is to have an emergency fund that you can draw on if something unexpected happens. That emergency fund is a lifeline, saving you from slipping into debt when your car breaks down, your child breaks their arm, or your roof develops leaks. A robust emergency fund can even carry you through multiple months should you lose your job unexpectedly.

There’s a lot we can say about how much to have in your emergency fund, how to calculate that amount, how to determine what you’re comfortable with, etc.

But for today’s post, I want to address another common question:

Where should I keep my emergency fund?

There are two main ways to address this question:

• You’ll first want to decide the type of account (Savings account? Checking account? Brokerage? Shoebox of cash under your mattress?)
• And then you’ll want to decide the specific institution. (Which bank? Which brokerage? What brand of shoe for that shoebox?)

I’ll be sharing here my answers and reasoning for both of these questions.

Personal finance is personal, so although I’ll be sharing what works for our family, don’t feel obligated to do exactly what I’m doing. But since I find it helpful to see the decisions…