Emergency savings do's and don'ts

First fuel prices surged, then mortgage rates, and now food costs could spike due to the war in the Middle East. Which means making an emergency savings pot matters more than ever.

The Financial Conduct Authority (FCA) recommends that savers have at least three months’ take-home pay saved for emergencies. But where's the best place to keep those funds? And do you budget for a crisis?

Here, Which? lays out the do's and the don'ts of building an emergency savings fund.

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DO open a savings account

Instant-access accounts are best suited for emergency savings. They allow you to deposit money whenever you want, and many will let you dip into your pot as often as you need to.

This table shows the best rates for instant-access accounts, ordered by rate and excluding those that impose restrictions on opening and withdrawals. 

• Find out more: best savings accounts 2026

Instant-access cash Isas, which allow you to save up to £20,000 a year tax-free, also offer competitive rates. Moneyfacts data shows the average rate for an instant-access cash Isa has beaten instant-access savings accounts for the past two years.

Now is also a great time to open a cash Isa, as providers boost rates to entice savers looking to maximise their allowance at the end of the financial year and beginning of a new one on 6 April.

This table shows the best rates for restriction-free instant-access cash Isas, ordered by rate.

• Find out more: best cash Isas 2026

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DON'T stick to the high street

Savers need to look beyond the high street for the most competitive instant-access deals. The best rates are offered by smaller, challenger banks – most of which are online or app-only accounts. 

We analysed Moneyfacts data on 7 April 2026 and found the average rate on an instant-access saver provided by one of the UK's 'big four' high street banks (Barclays, HSBC, Lloyds and NatWest) was just 1.70% AER.

That's almost three times lower than the top-paying rate of 5% AER, offered by Cahoot.

If you have a large lump sum, failing to switch to a higher interest rate could cost you a significant sum. For example, if you invested £10,000 in the average high street account paying 1.34% AER, you could expect to earn £134 in interest over a year. 

But let's say that balance was invested in an account paying 4.75% AER - that's the top rate for all deals (including those with restrictions) that allow a deposit that large. Your annual interest income with this account would increase to £475.

See our guide to the best savings accounts to compare the latest rates and providers.

DO come up with a savings plan

How much more you need to save will depend on your individual circumstances. For example, you may have a family to support, or health problems that mean you don't have a reliable source of income. 

The FCA recommends having enough money to cover you for three months. If you're retired, however, you may need much more to tide you over – think one to three years' worth.

Building a safety net can feel daunting, especially if money is tight. But starting small and contributing consistently will add up over time, and you’ll be glad of every penny if you ever need it. Go through your current spending to identify the things you simply can't live without and work out what each costs. Then set a target to aim for.

Clare Stinton, senior personal finance analyst at Hargreaves Lansdown, told Which?: 'Consider what financial support you’d have if life threw you a curveball – any insurance? Could family help you out? Or would you be on your own? 

'Those going it alone or with irregular income may prefer to err on the side of caution and build a larger buffer.'

Our guide on how to budget is packed full of helpful advice and practical tips to calculate your spending, draw up a money saving plan and stay on track with your financial goals. 

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DON'T restrict access

The most important thing to consider when starting an emergency savings fund is how quickly you get at your cash when an urgent need arises. Unfortunately, many of the top rate instant-access accounts come with restrictions that could affect your ability to make withdrawals in a hurry.

Which? analysis of Moneyfacts data on 7 April 2026, for example, showed that half of the top 10 instant-access accounts place limits on the amount of withdrawals you can make during the year. With some accounts, the penalty for making too many withdrawals could see your interest rate drop sharply, while others will lock you out. 

For example, Virgin Money's Double Take E-Saver, which pays a competitive 4.16%, only allows two withdrawals per calendar year, including account closure. Once the second withdrawal has been made, you will not be able to access your funds until the next calendar year.

Even if an instant-access account has no limit of withdrawals, you may still face delays taking out money. Research commissioned by savings provider Spring found that 67% of the top 30 easy access accounts either impose a cut-off time or don’t offer faster payments (which allow near-instant electronic transfers) within two hours. 

Only three of the top 10 instant-access providers offer faster payments, the remaining seven set cut-off times or only offer access to funds the next working day. Of the top 30 providers, 14 set a cut-off time for same-day access to funds. 

Six require requests before 3pm; otherwise transfers occur on the next business day, posing a challenge if you need immediate access. Some providers even impose a cut-off time as early as 11am.

• Find out more: how the war in the Middle East could affect your finances

DO seek professional help if you are worried

If you have lost your financial safety net, are struggling to pay the bills or have fallen into debt, there are a number of independent charities that can help.

StepChange offers free, confidential debt advice from money experts, recommending the best solution based on your circumstances. Citizens Advice offers free guidance on everything from debt solutions to finding financial advice, while Money Helper can also advise about living on a squeezed income.

You can also get free advice from Which? on how to deal with debt.

If you're worried about keeping up with your mortgage, credit card or loan repayments – or you've missed payments already – you should always contact your lender in the first instance.

• Find out more: what to do if you can't pay your mortgage

DON'T neglect other savings and investments

Building an emergency savings net is vital, but not at the expense of other aspects of your finances. 

For example, you should still think about longer-term savings goals and consider locking money away in a fixed account. Unlike an instant-access account, which has a variable rate that can change at any time, fixed-term bonds guarantee you the same returns for a set period – usually between one to five years.

It's also crucial that you keep paying into your pension. If you’ve got surplus income, split it so you can build your cash buffer while still contributing to a pension. Once your emergency fund is solid, shift gears and invest more fully.

And remember: an emergency fund is meant to be used. When you dip into it, top it back up while keeping your long-term investments on track.

• Find out more: types of savings accounts