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I Stopped Keeping My Emergency Fund in Checking - Here’s What It Earns Now

Why let cash sit idle when it could be earning something?

Young woman checking online banking on phone
Roxana Loomes
Melinda Sineriz, ABFP®
By Roxana Loomes , Edited by Melinda Sineriz, ABFP®
Updated Sept. 25, 2026
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Quick Read

  • My $25,000 emergency fund earned $2.50 last year while sitting in checking. In a high-yield savings account at 3.75% APY, the same balance earns $937.50 a year.
  • Opening the account took 10 minutes. Other than the interest, nothing else changed.
  • I still keep a small buffer in checking. The rest is now in the high-yield account, earning hundreds instead of a few dollars.
  • At the national average savings rate of 0.38% (as of 06/15/26), $20,000 earns $76 a year. The same balance could earn up to ten times more with a SoFi account. See SoFi®'s current rate.

For years, I kept my emergency fund in the same checking account as my everyday expenses. I didn't think much about it. By chance, one day I discovered what it was earning: $2.50 a year on a $25,000 balance.

After seeing that number, I transferred it to a high-yield savings account paying 3.75% APY, and it started earning $937.50 a year. My only regret? That I didn't act sooner.

$20,000 earning nothing could mean $73 a month, gone. Move it to SoFi and earn up to 4.40% APY on Savings (3.30% APY1 with +1.10% APY Boost) for up to 6 months2.

What the account pays now

At 3.75% APY, my $25,000 balance earns roughly $937.50 a year, or about $78 a month, as long as the balance and rate stay the same.

I moved the money 10 months ago, and in that time it's earned close to $780. That would have been about $2 in my old checking account over the same stretch.

The interest gets deposited monthly and compounds on the growing balance, so each month's payout is calculated on a slightly larger number than the one before.

The move

The weekend after finding out my checking account paid 0.01% APY, I opened a high-yield savings account, linked it to my existing checking account, and moved the money. Setting up the account took about 10 minutes.

My checking account had a transfer limit, so I had to move the money in three installments. The transfers took a few days, and everything was done in less than a week.

The savings account I picked had no monthly fees or minimum balance requirement. The rate wasn't a short-term promotion (something to watch out for), and it's still competitive months later.

If you have One year at 0.38% APY (national average) One year at 3.80% APY (example) You are leaving behind
$10,000 $38 $380 $342
$25,000 $95 $950 $855
$40,000 $152 $1,520 $1,368
$50,000 $190 $1,900 $1,710
$100,000 $380 $3,800 $3,420

I can still get to it fast

I hadn't moved the funds sooner because I thought a savings account would make my money harder to reach in an emergency. In reality, transfers from the high-yield account to my checking account take one to two business days.

I don't have a debit card or ATM access (everything is online), so I don't use the account to pay for anything directly. And that's fine since an emergency fund isn't meant for everyday spending.

I haven't had a reason to pull from it yet, but the fine print promises that even a Saturday morning transfer should clear by the following Tuesday. That's slower than using an ATM, but it shouldn't be a problem if you keep a buffer in your checking account.

We did the research for you. Having your checking and savings accounts with the same financial institution can make money management a lot simpler. SoFi® was our 2026 award winner for Best Checking and Savings Combo because it delivers on interest and additional features. For example, you could earn up to 4.40% APY on your savings balance with direct deposit. (3.30% APY1 with +1.10% APY Boost) for up to 6 months on new accounts.2 SoFi also offers more special features than any other account combo we looked at: No account fees: No overdraft fees.3 No minimum balance fees. No monthly fees.4 Get paid up to two days early: Feel the magic of payday up to two days earlier — automatically — when you set up direct deposit.5 Access additional FDIC insurance up to $3M: Typically, single-member deposit accounts are federally insured up to $250,000. With SoFi, FDIC insurance up to $3 million on deposits is available through a seamless network of participating banks.6

Open an account with SoFi here.

What I keep in checking now

I have about $3,500 in checking, primarily for same-day expenses, the kind of things that can't wait even one business day. That way I'm not waiting on a transfer to cover them.

Everything beyond that buffer now sits in the account earning 3.75%.

What I'd tell someone still holding it in checking

If the rate holds for a full year, I'll be almost $940 richer, and all I had to do was move money from one account to the other. Access isn't the deal-breaker I had built up in my head. One to two business days is fast enough for my needs.

If I were starting over, the only thing I would change is doing it sooner.

Your money is already saved. Now see how it could be earning you hundreds per year.

Bottom line

My emergency fund makes me $937.50 a year instead of $2.50. I can still reach it within a few business days whenever I need it.

The best part? It's working in a high-yield savings account instead of sitting in checking, earning almost nothing.

FAQs

Where should you keep an emergency fund?

Ideally, most of it should be in a high-yield savings account, where it earns a competitive rate and stays separate from everyday spending. A small buffer in checking lets you cover any urgent needs without waiting on a transfer.

How quickly can you withdraw from a high-yield savings account?

Transfers back to a linked checking account typically take one to three business days. Some banks offer same-day or instant transfers between their own accounts, so check the specific timing before you move your money.

Should an emergency fund be in savings or checking?

Savings, for most of the balance. Checking accounts typically pay little to no interest. A high-yield savings account often has a much higher rate without losing much access, since many emergencies don't require instant payments.

Would You Spend Ten Minutes for $1,465?

That's roughly the year's difference on $40,000 between the national average and the up-to-4.00% rates available now. And ten minutes isn't a figure of speech. You just provide some information, like your name, address, Social Security number, and the account your deposit money's coming from. But rates are variable and follow the market, which is why the only number worth acting on is today's. Compare the current top accounts here.

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