3 Places You Should Never Keep Your Emergency Savings Fund

Your emergency fund is for emergencies, which means it should be instantly accessible to you at all times. That also means there's only a few smart places to keep that money -- otherwise, you're putting yourself at risk when you need it most.

Here are three places you should never keep your emergency fund in 2026 -- or ever.

1. Under the mattress

This one goes without saying -- I hope.

We all have a tinfoil-hat-wearing friend who insists on keeping money at home, under a mattress or in a safe or elsewhere. But aside from the obvious safety risks -- theft, fire, etc. -- that money isn't nearly as accessible as it would be in an actual bank account.

Your money's also earning absolutely nothing in interest if it's collecting dust at home. For a better option, consider a high-yield savings account (HYSA) that earns 4.00% APY or higher and keeps your money totally accessible.

Want to compare options now? See our list of the best high-yield savings accounts available today.

2. A traditional bank account

A traditional bank account is much safer than keeping your money at home -- but when it comes to earning potential, it's probably not much better.

Big banks like Chase, Wells Fargo, and Bank of America all offer next to nothing in interest on their standard checking and savings accounts. I'm talking just a few dollars (or less!) in interest every year on balances of $10,000 or more. That means your money's probably not even keeping pace with inflation.

The aforementioned HYSAs blow most standard savings accounts out of the water. The best part? Your money's still FDIC-insured up to $250,000, which means it's just as safe.

3. Long-term investments

Keeping your emergency fund in, say, an index fund might seem like a smart move. After all, it's earning, right?

Sometimes -- but not always. Diversified index funds are a smart bet over the long run, but the market constantly goes through short-term swings. That means your emergency fund could take a hit right before you need it most.

Aside from that, your money isn't as accessible with most investment options. The point of an emergency fund isn't to maximize growth -- it's to keep your money totally accessible when you need it most.

And to get the best of both worlds, an HYSA is absolutely the smartest option.

Ready to earn more on your emergency fund and keep your money totally accessible? Check out our list of the best high-yield savings accounts available today.