The Importance of Setting Aside an Emergency Fund

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Emergencies happen, and you could be at risk financially if you don’t have an emergency fund set aside.  

What is an emergency fund?  

Put simply, an emergency fund is a dedicated savings account to stash your cash for when something unpredictable happens.  Think about it - if the pipe under your sink breaks, would you rather have the money to pay it or max out one of your credit cards and accrue the associated interest on top of what you are already spending to fix the problem? 

Know your options.

If you are looking for a way to plan for the unknown, it’s important to understand what types of accounts are available. Look for an account with no fees, easy access and direct deposit options.  Pay yourself first! 

Here are some options and the benefits of each. 

Personal Savings Account
  • Earns interest
  • No minimum balance requirements
  • No monthly fees
Personal Money Market Account
  • No monthly service charge with minimum balance *
  • Tiered interest based on minimum balance - the more you save the more interest you earn!

Looking for more of a long-term plan? Open a CD or consider an IRA. If you are still unsure and would like some assistance with determining what the right solution is for your financial situation, schedule a time to meet with one of our Financial Advisors for some guidance.

Understand your financial situation and identify easy ways to save. 

Look at your overall financial picture and know how much money you can put away each month. To see a snapshot view of your finances all in one place, check out our Personal Financial Management tool, available on Online Banking and our Mobile App.

Start with an attainable goal, but when you get there don’t stop saving. Set another target to strive for! Hitting  incremental goals will be encouraging and build momentum. 

Set up an auto-transfer directly into your savings account from your direct deposit account each month. With an Enterprise checking account and debit card you can enroll in our Encourage Savings program to have your debit card transactions rounded up to the next dollar so the remaining change is deposited directly to your personal savings account!

Use available tools such as Online and Mobile banking to stay on top of your account balances. Put any extra funds you have each month into your emergency fund easily with account to account transfers

Have multiple loan or credit card payments each month? Consider loan consolidation options to free up some extra funds to set aside for emergency situations. 

Make a habit of putting all, or at least a portion, of cash gifts that you receive directly into your emergency fund account. Does the sender have an Enterprise account?  Ask them to use the P2P payment feature in Online or Mobile Banking to deposit those funds directly into your emergency account. 

Let us help you get started! 

Contact us at (833) 896-2850 to talk with an associate about what type of account is right for you.  

Need assistance signing up or additional information on one of the products listed above? Visit enterprisebank.com, send a secure message through Online Banking or give us a call (833) 896-2850. We’re here to help.