How to create an emergency fund

Having savings to cover unexpected expenses is crucial for managing your finances. Emergency funds can provide numerous benefits:

• You can avoid borrowing during an emergency

• Your investment will grow and earn interest.

• You will be prepared for unforeseen costs.

• You will have peace of mind.

When setting up an emergency fund, here are a few things to consider:

• Safety and diversity

• Growth - Ensure that the interest or rate of return offered matches inflation to maintain the value of your savings.

• Liquidity - Make sure you can access your money instantly. In times of need, you need to be able to access your savings quickly. Verify how easily you can access your funds without incurring early withdrawal penalties. The ideal account for an emergency fund allows instant access to your savings at no additional cost.

Consider opening an Old Mutual Money Market Fund account to grow your emergency fund. Invest by applying with our investor portal or dialling *480# and start enjoying the peace of mind that comes with smart, stable investing today.