Why might it be better to keep your emergency fund money in a separate account?

2. Where should I keep my emergency savings?

Generally, keeping your emergency savings accessible and liquid can be a good idea—in addition to avoiding risky investments that could lose money.

To avoid using your emergency savings, it can also make sense to separate it from your spending money and other types of savings.

For example, a savings account can be a convenient and accessible option.

How much should i put in my emergency fund per month

Money market accounts can be too, and are typically offered by banks and credit unions. The average annual percentage yield (APY) for money markets is 0.64%.¹ Compared to a savings account, a money market account may have a higher minimum balance and withdrawals may be limited.

For instance, you may be allowed unlimited ATM withdrawals, but checks and debit card purchases could be limited.

Consider the following alternatives:

Money market funds² tend to be a lower-risk place to store your cash, and generally offer better rates than your typical savings account.

Unlike savings accounts, money market funds are not FDIC-insured.

Treasury and governm

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