An emergency fund and savings account are important components of a healthy financial plan. While both can provide you with a safety net for your finances, the two accounts serve different purposes.

Emergency Fund vs. Savings

• Emergency Fund: It’s money that is used for unexpected expenses like car and home repairs or medical emergencies. This allows you to handle life’s financial challenges without relying on credit cards or loans.
• Savings Account: Money in a savings account  is ideal for short or long-term goals such as saving for a house downpayment, education, starting a business or travel. They offer a safe place to keep your funds while remaining completely accessible.

To learn more about their key differences, read the latest blog about emergency funds vs savings accounts and why having both can help you achieve financial stability.