Emergency fund UK: how much you need and where to keep it (calculator)
How big your emergency fund should be, where to keep it in the UK, and how to build one from nothing. Includes a free calculator for your target and how long it will take.
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An emergency fund is money set aside for the things you cannot plan for: a broken boiler, a vet bill, a car repair or losing your job. Having one is the difference between a bad week and months of debt.
Use the calculator to work out your target and how long it will take you to get there.
Rent or mortgage, bills, food, transport, debt repayments. Leave out treats and holidays.
Your emergency fund
Target for 6 months
£10,800
5% of the way there
- Still to save
- £10,300
- Time to get there
- 52 months
At this rate you will hit your target around March 2031.
First milestone: £1,000. A starter fund this size covers most surprise bills while you build the rest.
How much should be in an emergency fund?
The usual guide is three to six months of essential spending. That means the bills you must pay whatever happens:
- Rent or mortgage
- Energy, water, council tax and broadband
- Food and household basics
- Transport to work
- Minimum debt repayments and insurance
Leave out meals out, holidays and other spending you would cut in a crisis.
Lean towards six months, or more, if you are self-employed, your income goes up and down, you are the only earner in your household, or you work in an industry with frequent redundancies. Three months can be enough if your income is secure and there are two earners.
A real example
My own essential costs are about £2,500 a month. Six months of that is £15,000, but I like a buffer for peace of mind, so I keep closer to £20,000. Yours will be different. The point is to work it out from your own numbers rather than pick a round figure.
What if I have debt?
Build a starter fund of £1,000 first. That stops a small emergency going on a credit card and making the debt worse. Then put spare money towards your most expensive debts, like credit cards and overdrafts. Once they are gone, grow your fund to the full three to six months.
Where to keep your emergency fund
Your emergency fund needs to be safe, separate and quick to reach.
| Option | Good for | Watch out for |
|---|---|---|
| Easy-access savings account | Most people. Money available the same day or next | Rates change, so check yours every few months |
| Easy-access cash ISA | Larger funds, where interest might go over your Personal Savings Allowance | Must be flexible or easy access, not fixed |
| Savings pot with your bank | Convenience, keeping it out of sight | Pot rates are often lower than the best accounts |
| Notice account (30 to 95 days) | The part of a big fund you will not need instantly | You cannot get the money straight away |
Do not keep your emergency fund in shares or a stocks and shares ISA. Markets can fall just when you need the money.
Is my money safe?
Savings with UK banks and building societies are protected by the Financial Services Compensation Scheme up to £120,000 per person, per banking licence, since 1 December 2025. Some brands share a licence, so check before spreading money across them.
How to build an emergency fund from nothing
- Open a separate account so the money is not mixed with day-to-day spending.
- Set up an automatic transfer on payday. Start small; £25 a month is better than nothing.
- Save windfalls: tax refunds, bonuses, birthday money and cashback.
- Cut one bill: switch energy tariffs, broadband or insurance and send the saving straight to the fund.
- Earn a bit extra: a few extra shifts or a side hustle can get you to your first £1,000 much faster.
- Try a challenge: the 1p savings challenge adds £667.95 in a year.
What counts as an emergency?
Something urgent, necessary and unexpected: losing income, a health or pet emergency, a repair you cannot live without, or an urgent journey.
Christmas, holidays, car servicing and annual bills are not emergencies. They are predictable, so save for them separately in a sinking fund.
Keep it topped up
After you use it, rebuilding comes first. Review the target once a year or whenever your costs change, for example after moving house or having a baby.
Common questions
Is £1,000 enough for an emergency fund?
It is a great starting point and covers most one-off surprises. For job loss or illness, you need more: three to six months of essentials.
Should I save or pay off debt first?
Save a £1,000 starter fund, then focus on expensive debt, then build the full fund. This stops new emergencies creating new debt.
Should my emergency fund be in a cash ISA?
It can be, as long as it is easy access. Interest within your Personal Savings Allowance is tax free anyway, but from April 2027 tax on savings interest above it rises to 24% for basic rate and 44% for higher rate taxpayers, so a cash ISA is worth more for larger funds.
This is general information, not personal tax or financial advice. Tax rules change and depend on your circumstances, so check GOV.UK or speak to an accountant before acting.