What’s your best option for an ’emergency’ fund?
If there’s one thing we can expect in life, it’s the unexpected. When that involves medical bills, house or car repairs, or redundancy, where would you find the funds to cover the emergency?
In times of financial difficulty, you might be tempted to rely on your credit card or an overdraft facility to get you through. These can both be useful for managing your day-to-day cash flow – but how could you benefit from keeping a rainy day fund in a high interest savings account?
We weigh up the options to show you why a high interest savings account may be a suitable financial fallback for your family.
A credit card
Credit cards are a quick and easy way to stretch the household budget to cover small, unexpected expenses. Some cards offer up to 55 days interest free on purchases, depending on when in your statement cycle you make the payment.