Emergency fund: Why you should have one

Emergency or rainy-day fund. Nest egg. Whatever you call it, everyone should set some money aside, whether they're just starting out or well into their journey.

When to start saving?

Now. Because your financial security can take a hit at any time and come from anywhere, the question is no longer 'Should you save for an emergency fund?' but 'How quickly and how much?'

How much is enough?

You may not be able to avoid the event that requires an emergency fund, but you can and should prepare for it.

While the size of your emergency fund will vary depending on your lifestyle, monthly costs, income, and dependents, one rule of thumb is to put away at least three to six months' worth of expenses. Add up essential living expenses for one month multiply by the number of months to be prepared for, and that's a possible rainy-day fund to plan for. That total may take you by surprise but should be a goal to shoot for. If you need assistance, talk to your Huntington banker.

Expenses to keep in mind when calculating your emergency fund:

  • Rent or mortgage
  • Utility payments (gas, electric, water, garbage)
  • Telecom payments (phone, cable, and internet)
  • Insurance payments (car, health, and home)
  • Transportation costs (car payment, gas, public transit)
  • Debt payments (credit cards and all loans except mortgage)
  • Grocery expenses
  • Other monthly expenses

You can also use our Emergency Fund Calculator to help determine how much of your income should be set aside for emergencies.

Where to keep an emergency fund

After you figured out how much to line your rainy-day fund with, you'll have to decide where to keep it. It's advisable to keep some cash, as much as $200, at home for immediate access.

For the rest, liquidity is still important, but it’d be wise to deposit whatever remains of your emergency fund into a safe, but quickly accessible account. Consider a savings account connected to your checking account, a money market account that comes with a debit card or check-writing privileges that can earn interest, and use digital tools to stay on track.

Open a savings account online

Start where you are. Grow what you've saved.

Savings accounts are great for setting aside cash for big purchases, like buying a house, or for emergency funds. You can set up scheduled transfers from your Huntington checking account to your savings account, which can help you reach your savings goals even faster.

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Disclosures

Investment, Insurance and Non-deposit Trust products are: NOT A DEPOSIT • NOT FDIC INSURED • NOT GUARANTEED BY THE BANK • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • MAY LOSE VALUE

The Huntington National Bank (“Huntington Bank”) offers a full range of wealth management and financial services through dedicated teams of professionals within the Huntington Private Bank® and Huntington Financial Advisors® as follows:

  • Banking solutions, including loans and deposit accounts, are provided by Huntington Bank, Equal Housing Lender and Member FDIC.
  • Trust and investment management services are provided by Huntington Bank, a national bank with fiduciary powers.
  • Certain insurance products are offered by Huntington Insurance, Inc. and underwritten by third-party insurance carriers not affiliated with Huntington Insurance, Inc.
  • Certain investment advisory solutions, securities, and insurance products are provided by Huntington Financial Advisors®, a financial advisory practice of Ameriprise Financial Services, LLC (“Ameriprise”). Huntington Financial Advisors® is the trade name of the investment program offered through Huntington Bank. Certain employees of Huntington Bank provide investment advisory, brokerage, and insurance services, offered by and through Ameriprise in their capacity as registered representatives of Ameriprise. Ameriprise is a registered investment adviser and broker-dealer member of FINRA and SIPC. Ameriprise is not affiliated with Huntington Bank, Huntington Insurance, Inc., or Huntington Bancshares Incorporated. Ameriprise and Huntington Bank partner to provide financial planning services and solutions to clients. Huntington Bank is not an investment client of Ameriprise; however, it receives revenue sharing payments from Ameriprise, which creates a conflict of interest. Details on how we work together can be found on ameriprise.com/sec-disclosure.

Huntington Private Bank® is a federally registered service mark of Huntington Bancshares Incorporated.

Huntington Financial Advisors® is a federally registered service mark of Huntington Bancshares Incorporated and is used under license.

Huntington Bank and Huntington Insurance, Inc. are wholly-owned subsidiaries of Huntington Bancshares Incorporated.

Minimum investment or deposit balance criteria apply with respect to the Huntington Private Bank. Please contact a Huntington Private Bank colleague for more information on eligibility requirements.