More than 6.5 million people in Florida were instructed to evacuate before Hurricane Irma struck the state. Leaving everything behind is not easy for a family — and it’s not cheap. While insurance may cover damage due to the storm, how do you handle the expenses you have when you need to change your plans with a moment’s notice?
You need an emergency fund. It’s one of the first steps for preparing for the unexpected — and handling your money like an adult. If you don’t have an emergency fund yet, you need to start it now.
Here are some of the best banks for emergency funds today — because they pay out some of the highest rates.
My friend’s brother lives in Florida, and his home was hit hard by Irma. He, his wife, and his daughter secured their home as well as possible and left town, driving with thousands of others north, away from where the hurricane would do the most damage. Because he had an online savings account with CIT bank, an emergency fund for the family, they were able to come up with the money they needed to get out of town and stay in a hotel for a few days before reaching family.
Start that emergency fund now.
Add to your emergency fund little by little. Transfer a small portion of every paycheck. It won’t hurt you to miss 1% of your pay today, and it will help you later when you need to come up with money fast.
Could you make more money by investing your money in stocks instead of a savings account? Sure, but it could take more time to withdraw the value of those stocks when you need the money, and chances are good you’ll need the money at a time when the stock value is lower than you’d hope.
Add the taxes you have to pay on top of that, and it’s easy to see why investing is not a good option for money you might need in an emergency. That’s why high-yield savings accounts are the best options for emergency funds — like the one you need to withstand the next hurricane.
Choose a bank below to start your emergency fund.