Saving rainy-day funds for emergencies like car and home repairs or healthcare can help you stay out of debt and have peace of mind. An emergency fund helps create a safety net you can fall back on when the unexpected happens.<\/p>
Read our guide below to learn where to keep your money in the best savings accounts for emergency funds in Canada, tips to help your savings grow and how you can be ready for life\u2019s next unexpected\u2014and costly\u2014events.<\/p>
An emergency fund is a financial safety net you can rely on if a major unexpected event happens in your life. When not being used, it can also help you earn interest and reach your financial goals. Unlike rainy-day funds that are meant for smaller, one-off expenses, an emergency fund is there to help in significant times of crisis. People commonly use emergency funds for:<\/p>
Emergency funds should be used for major emergencies and not for expenses you forgot to plan for, like birthday gifts, property taxes. If you can answer \u201cyes\u201d to these two questions, it\u2019s most likely an emergency.<\/p>