How much should I have in emergency savings?

One in ten have no savings at all, while over a fifth have less than £1,000, leaving them vulnerable to unexpected events. How much should you have in emergency savings?

Emergency savings concept - piggy bank in glass box with message to "break glass in case of emergency"
(Image credit: J Studios via Getty Images)

Some spending is easy to cut back on but other costs refuse to wait. If your boiler breaks down in the middle of winter or the car that you use for work packs up, you might find yourself falling back on your emergency savings.

Most people understand the importance of saving for a rainy day, but have questions when it comes to the specifics. How much should you hold in an emergency savings pot? Should your emergency fund be separate to money held for other savings goals? And which are the best savings accounts to keep your emergency fund in?

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Swipe to scroll horizontally

Period of essentials to cover

Amount of savings you need

Three months

£6,333

Six months

£12,666

One year

£25,332

Three years

£75,996

Swipe to scroll horizontally

Account

Rate (AER)

Notes

Cahoot Sunny Day Saver

5%

Rate paid on balances up to £3,000.

Atom Bank Instant Saver Reward

4.75%

Lower rate paid if a withdrawal is made in any given month.

Snoop Easy Access Savings Account

4.6%

N/A

Chip Instant Access Account

4.56%

Rate includes a 1.28% bonus for 12 months.

Cahoot Simple Saver

4.55%

Rate paid on balances up to £500,000 (but remember only £85,000 is covered under the Financial Services Compensation Scheme).

Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.