Kiplinger’s Personal Finance: Great accounts for an emergency fund

To prepare for a loss of income or a large, unexpected expense, the standard advice is to set aside at least three to six months’ worth of living expenses.

But only 41% of U.S. adults have stashed away enough to cover just a $1,000 emergency, according to a recent Bankrate survey.

Instead of tapping savings, 16% say they’d use a credit card, 14% would borrow from family or friends, and 7% would take out a personal loan.

An emergency fund in a dedicated account offers more freedom and less stress than a loan when you need money fast.

If you keep the funds in a bank money market deposit account, it might come with a debit card or checks, providing easy access. Like other bank accounts, a money market account is FDIC-insured.

If you prefer a savings account, look for one that allows large, quick transfers of money to your checking account, said Ken Tumin, founder of Deposit

One way to achieve that is to open both a savings and a checking account with a single bank — transfers within an institution are usually immediate and free, Tumin said.

Whichever type of account you choose, look for one that doesn’t charge a monthly maintenance fee.

If your account tacks on a monthly fee when the balance falls below a certain level, you might end up being charged if you make a big withdrawal. Ideally, the account will have a track record of offering a high interest rate and require a low minimum balance to earn interest.

Look for saver-friendly accounts. Tumin recommends three online savings accounts that fit the bill.

The Ally Bank Online Savings Account ( yields 1.6%, the Marcus by Goldman Sachs Online Savings Account ( has a 1.7% interest rate, and the SFGI Direct Savings Account yields 1.86% (

Among money market deposit accounts, check out the Sallie Mae Money Market Account (, which comes with check writing and offers a 1.75% rate. Redneck Bank Mega Money Market ( yields 1.75% on a balance of up to $50,000 and offers a debit card and checks.

The rates might have changed in recent weeks.  For the latest savings yields and loan rates, visit