Emergency fund
An emergency fund is money set aside in an easy-access account to cover unexpected costs or a loss of income.
Also known as: rainy day fund, rainy-day fund, emergency savings
A common goal is three to six months of essential spending, but any amount helps, and many people start with a smaller target such as one month. The money should be separate from everyday spending, easy to reach and not exposed to investment risk.
An emergency fund can stop an unexpected bill from turning into credit card or overdraft debt. If you have to use it, rebuild it as soon as you can.
Our free budget planner can help you put this into practice, and nothing you enter is stored.
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9 min readReadThis page provides general information only. It is not personalised financial, legal or tax advice, and rules and figures can change. Your situation is unique — please check official sources such as GOV.UK and MoneyHelper, and speak to a qualified, FCA-authorised adviser before making important decisions about your money.