High-Yield Accounts

Your emergency fund should sit in a high-yield savings account (HYSA), not a regular savings account and definitely not under your mattress. Regular savings accounts pay around 0.01% interest. HYSAs currently offer 4-5%, which means your $10,000 emergency fund earns $400-500 per year instead of $1.

Keep this money separate from your daily checking account. Out of sight, out of mind. Most HYSAs are online-only banks, which actually helps — transferring money back takes 1-2 days, and that slight friction stops impulsive withdrawals.