A blown engine on the way to work or an unexpected dental bill. Life has a knack for delivering expensive surprises, often at the exact moment your budget feels most fragile.
It's no wonder 44% of Americans report they think about their financial preparedness every single day, yet more than one-third admit they are not confident they have enough savings to cover unexpected bills, according to TD's Financial Preparedness Report, Consumer Index released last year.
While many financial experts now recommend saving up to six months' worth of expenses in an emergency fund, that goal can feel overwhelming, if not completely out of reach. So, what's realistic?
Start small and start now
The key to building an emergency fund isn't perfection; it's momentum.
"Start somewhere," said Marc Womack, Head of U.S. Consumer Deposit and Payment Products at TD Bank U.S. "Even setting aside $10 a week can make a meaningful difference over time."
That amount may sound modest, but over the course of the year, it adds up to more than $500. If $10 feels like a stretch, start with $5 and increase the amount when you are able. It's money that could help soften the blow of a surprise repair, utility bill spike or medical co-pay. Emergency savings is about habit building, not hitting a magic number overnight.
Marc suggested that people consider developing an emergency fund like physical fitness.
"You don't start by running a marathon, you start by walking for 15 minutes," he said. "Over time, consistency builds strength. Financial health works the same way."
Put your money to work safely
When funds are limited, it can be tempting to stash the cash at home, just in case. But that approach comes with real risks: money can be lost, stolen or simply fail to grow. Having cash stashed in a drawer makes it too easy to grab some for pizza or a movie night and then never replenish it.
Most financial institutions, including TD, offer insurance from the Federal Deposit Insurance Corp. (FDIC) for accounts that protect your savings while allowing it to earn interest.
"Keeping your emergency fund in a bank not only adds security, but also helps your balance grow, even if slowly," Marc said.
Another helpful strategy is separation. Opening a dedicated emergency savings account and setting up automatic transfers or direct deposits can make saving feel almost effortless.
"When it's out of sight, it's out of mind," Marc said.
Automatically transferring a small amount each week or month means building up savings (with interest) without constantly debating whether you can afford it. After a few months, those small deposits can add up to a meaningful balance that doesn't seem so small.
For savers just getting started, TD has a variety of savings accounts, including options with low fees and no required opening deposit, making it easier to build an emergency fund gradually. TD checking and savings accounts can be connected for immediate transfers, making the process much easier.
If you're able to set aside a larger amount and don't expect to need it right away, a Certificate of Deposit (CD), may be worth considering. CDs are FDIC-insured and typically offer higher interest rates than a savings account in exchange for keeping the money untouched for a set period of time. While the funds can be withdrawn if truly needed, early withdrawals usually come with a penalty, so it's important to weigh flexibility against higher returns.
More than an account: building financial knowledge
Beyond saving products, working with a bank can offer something just as valuable: financial education on platforms such as the TD Learning Center.
"At TD, we focus on meeting clients where they are on their financial journey," Marc said. “Whether you prefer digital tools or in-person conversations, bank staff can help explain products, clarify fees and interest rates. We offer guidance tailored to your goals."
No matter your income level or stage of life, building emergency savings is a powerful first step toward financial peace of mind, Marc concluded. "Remember, you don't need to do it all at once. You just need to start."
We hope you found this helpful. This article is for informational purposes only and is based on information available as of March 2026 and is subject to change. This content is not intended to be used or acted upon with respect to any client's specific circumstances. For specific advice about your unique circumstances, consider talking with your qualified professionals.
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