Answers · UK 2025/26
How much should I save in an emergency fund?
The UK rule of thumb is 3 to 6 months of essential monthly expenses in easily accessible savings (Cash ISA or easy-access account). On £2,000/month essentials, aim for £6,000-£12,000.
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UK emergency fund planning. Target: 3-6 months of ESSENTIAL expenses — not your full salary. Essentials = rent/mortgage, utilities, council tax, food, transport, insurance, minimum debt repayments. Excludes discretionary spending. On £2,000/month essentials: 3 months = £6,000 minimum, 6 months = £12,000 comfortable. Single-earner households or self-employed: target 6+ months. Dual income, stable employment: 3 months may suffice. Where to keep it: Cash ISA (4.0-4.8% AER in 2025, tax-free), easy-access savings account, or premium bonds (NS&I, average ~4.4% prize rate, tax-free, but variable). NOT in: stocks/funds (volatile), fixed-term savings (locked), under the mattress (inflation erodes). Build it gradually: aim for £1,000 first (covers most urgent costs), then 1 month, then 3 months. Set up automatic transfer on payday — typically 10% of net income until target reached. Replenish after use. Common emergencies: car repair £500-£2,000, boiler £1,500-£3,500, redundancy buffer (statutory pay can leave gaps), unexpected medical/vet costs. The discipline saves you from credit-card debt (20%+ APR) when life happens.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.