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Are you making the most out of your Emergency Funds?

Emergency funds are a crucial part of financial planning, but are you making the most of them?

I stash mine in a high-yield savings account generating thousands of dollars each year risk-free.

Assuming an emergency fund of $50,000, you will make over $2000 a year in a high-yield savings account vs $5 in a regular checking account. That’s over a $7000 difference in 3 years!

I consider these 3 factors where to park my money:

  1. APY

  2. Access

  3. Security


APY is the % your bank pays you on cash hold with them. It’s important to maximize the interest you earn to build wealth and fight inflation. Don’t leave excess money in a checking account that’s earning you 0.01%.


Immediate access is key because if you have an emergency, you need money right away. I look for accounts that have both no withdrawal fee and no minimum account balance.


With Americans worrying about the safety of their money in banks at an all-time high, I put my money in an FDIC-insured bank. FDIC insurance protects the cash held in bank accounts up to $250,000.

I keep my emergency funds at @Wealthfront because they offer:

✅ 4.55% APY

✅ Immediate access

✅ No Withdrawal Fee

✅ No Minimum Account Balance

✅ Security ($5 Million in FDIC Insurance)

If you sign up for a Wealthfront account, using my referral link, we can both receive a 0.5% boost.

That’s 5.05% APY for 3 months.

P.S. If you’re wondering how much Emergency Funds you should have, the standard rule of thumb is 3-6 months of living expenses.
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