Emergency fund

(redirected from Emergency Funds)

Emergency fund

A reserve of cash kept available to meet the costs of any unexpected financial emergencies.

Emergency Fund

An account where an individual deposits funds to use in an emergency. That is, if one finds himself laid off and unable to work due to a medical emergency (or, otherwise, in a financially difficult position) the emergency fund helps prevent destitution while one finds another job or recuperates. Many analysts recommend keeping three to six months of living expenses in an emergency fund, while others recommend setting aside a year's worth of expenses. See also: Rainy day fund, Equalization Reserve.

Emergency fund.

An emergency fund is designed to provide financial back-up for unexpected expenses or for a period when you aren't working and need income.

To create an emergency fund, you generally accumulate three to six months' worth of living expenses in a secure, liquid account so that the money is available if you need it.

It's a good idea to keep your emergency fund separate from other savings or investment accounts and replenish it if you withdraw. But you don't have to limit yourself to low-interest savings accounts, and might consider other liquid accounts, such as money market funds, that may pay higher interest.

If you're single or have sole responsibility for one or more dependents, you may want to consider an even bigger emergency fund, perhaps large enough to cover a year's worth of ordinary expenses.

References in periodicals archive ?
Life insurance-life risks are part of life and sometimes those risks are beyond emergency funds and life insurance becomes crucial.
Emergency funds up to $495 can be used to cover the cost of the renewal application for DACA status, employment authorization and biometric services.
At Michigan, Fowler's office receives about five inquiries per week for emergency funds.
Global Banking News-June 22, 2017--Government says Norway banks need to pay more into emergency funds
BERLIN, July 16 (KUNA) -- European Central Bank chief Mario Draghi said on Thursday that the ECB has decided to boost emergency funds to Greek banks by 900 million euros for one week.
The European Central Bank rejected Greece's request for 6 billion euros of extra emergency funds on Sunday, but is expected to continue limited support for Greek banks until the July 5 referendum, people with knowledge of the matter said.
1 mln) in federal emergency funds have been allocated to aid affected families and handle the disaster, AP reported.
While 45% of YorKshire people said they would BREAK into their emergency funds to fund essential home maintenance, 22% would use it pay for a holiday.
It is the younger generation, aged 16 to 24, that regret breaking into their emergency fund the most (29%), while the majority (62%) of those aged 65 plus said they never break into their emergency funds.
Steve Gregory, managing partner at Holborn Assets, says emergency funds are also not usually large enough amount to deal in money market funds.
BO) has announced that it has not sought emergency funds.

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