Emergency fund versus savings account.

Facing retirement in less than two years I now have to start increasing my emergency fund, something I’ve neglected over the years.

I use a bank current account for day-to-day budgeting. My ‘savings’ (just under €4,000) are in a Credit Union account which I draw on or borrow from as the need arises. That money is essentially just lying there, although I use it to borrow against.

Is there any point in having a separate savings account in addition to an emergency fund? Should I make the CU account the emergency fund?

Seeing as interest on savings is practically non existent is there a more productive way to use extra cash?

pingin said:

Seeing as interest on savings is practically non existent is there a more productive way to use extra cash?

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ClubMan said:

Best Buy - Savings Best Buys

Savings Best Buys: There are 3 savings best buy threads on AskAboutMoney that are updated frequently. Instant Access and Notice Accounts - Lump sum variable rate savings. Fixed Term Deposits - Fixed Lump Sum Term Deposits from a few months to a few years. Regular Savings - Smaller sum...

www.askaboutmoney.com

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Thank you ClubMan. Would those rates be considered a good rate nowadays?

pingin said:

Thank you ClubMan. Would those rates be considered a good rate nowadays?

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Isn't the term "best buys" self explanatory?

pingin said:

Thank you ClubMan. Would those rates be considered a good rate nowadays?

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That depends on who is doing the considering! They may be the best around, but they're still pretty dire at a time when the annual inflation rate is at least 5%, and probably more.

pingin said:

Is there any point in having a separate savings account in addition to an emergency fund?

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Can you see any point to that, because I can't! (Mind you, if you're getting a lump sum when you retire then you could revisit the matter at that point.) But maybe you're afraid that you're going to squander the CU funds, so want to put it away somewhere where it won't be immediately accessible?

pingin said:

Should I make the CU account the emergency fund?

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That's effectively what it already is.