Where to keep my emergency fund

Starbrite

Hi Everyone, I finally have the starting's of an emergency fund. I've built up £1,000 via a regular savings account which comes to an end later this month.

I now have no idea where to keep said money, I am planning to have another regular savings account this year and will add this to the 1k hoping building up a few months worth of expenses.

Somewhere easy access for in the event of an emergency, and potential to gain interest. 

Thanks 

masonic

A Cahoot Sunny Day Saver will land you 5% on the £1k. You may wish to drip feed from there into another regular saver at a higher rate, as many options allow access if you need it. I'm assuming you'll earn interest tax free using your Personal Savings Allowance.

jaypers

Pick another Regular Saver that gives you the option to withdraw/close without penalty. Principality are excellent and have a couple to choose from. Money accumulated so far could be put into an Easy Access account, also used perhaps as a feeder to Regular Savers? Do you already have a Chase account? If not, open one and take advantage of the new customer offer in their EA a/c. Even better, Cahoot Sunny Day (5% on up to £3k). 

Starbrite

jaypers said:

Pick another Regular Saver that gives you the option to withdraw/close without penalty. Principality are excellent and have a couple to choose from. Money accumulated so far could be put into an Easy Access account, also used perhaps as a feeder to Regular Savers? Do you already have a Chase account? If not, open one and take advantage of the new customer offer in their EA a/c. Even better, Cahoot Sunny Day (5% on up to £3k). 

Yes, I have a Chase account already

Starbrite

masonic said:

A Cahoot Sunny Day Saver will land you 5% on the £1k. You may wish to drip feed from there into another regular saver at a higher rate, as many options allow access if you need it. I'm assuming you'll earn interest tax free using your Personal Savings Allowance.

jaypers said:

Pick another Regular Saver that gives you the option to withdraw/close without penalty. Principality are excellent and have a couple to choose from. Money accumulated so far could be put into an Easy Access account, also used perhaps as a feeder to Regular Savers? Do you already have a Chase account? If not, open one and take advantage of the new customer offer in their EA a/c. Even better, Cahoot Sunny Day (5% on up to £3k). 

Oh, so I don't just stick it somewhere, I kinda make it work and get me more % 

Sorry i am new to saving, getting out of debt I'm a pro at! Now i am debt free hence the emergency fund building 

xx

masonic

Chasing those last drops of extra interest isn't necessary, but some consider it sport. I try to keep as much as I can circulating within regular savers, but a good easy access account is essential for money waiting to be fed back in.

Starbrite

One last question.... Do I want interest paid monthly or annually on the sunny day account?

I'm rather excited about this drip feeding into a reg savers plan... Just had a read up on it seems pretty 'simple'

masonic

Monthly vs Annually makes little difference, as the AER is the same. I tend to go for annual when available because it makes it easier for me to add up interest earned across my accounts. But others prefer monthly.

Altior

There are a plethora of options, for me Zopa is right up there. The RS is variable, but a chunky 7.1% AER currently, and flexible. Withdrawals are instant. I suppose the only very mild negative is that the monthly autosave payment date is restricted. For example if you pay £300 into a new RS today, you can't pay in another £300 until 05/02/26. Most RS are any day in a calendar month. 

Sea_Shell

Maximising interest is great, but also consider which account is going to be the quickest/easiest to access if you need it ASAP.   

Can you get cash out of an ATM?
Do they support instant transfer to your main current account (or where it's needed)?
Are there any penalties (or drop of interest) if you make withdrawals?
Consider if you need more than one account to do different things, for different emergencies.
If you have a partner, can you both access some money in an emergency?


We have a second joint CA, that we keep £300 in for cash emergencies.  Zero interest.
We have a joint Marcus account linked to our main CA, which we can both access and make transfers.  Some interest, but not the highest, admittedly.   This is not 'instant' access, but is fairly fast.
The rest is in my name, and is more general savings, earning better interest, rather than an emergency fund as such.

Baldytyke88

I put £2k into premium bonds.

The effective interest rate on UK Premium Bonds is a variable, tax-free prize fund rate, currently 3.6% (as of August 2025)