A considered guide to building
your emergency fund

What is an emergency fund?

An emergency fund is a dedicated pool of cash set aside exclusively for unexpected, essential expenses. The keyword is unexpected: a planned holiday in the Engadin is not an emergency. A sudden medical bill, a broken boiler, or an unexpected loss of income very much are.

The fund should sit in a liquid, low-risk account. Our Mintbridge Reserve savings account, currently paying 1.75% p.a., is purpose-built for exactly this: it earns a meaningful return while remaining immediately accessible.

How much should you save?

The standard guidance is three to six months of essential living costs. "Essential" means rent or mortgage, food, health insurance, utilities, minimum debt payments, and transport to work. It does not mean streaming subscriptions or dining out.

If you are self-employed, have irregular income, or support dependants, aim for six to twelve months. Stability costs more to insure against when you have less of it.

Where to keep it

Your emergency fund has two requirements: it must be safe, and it must be accessible within 24 hours. That rules out several options:

• Investment accounts: market volatility means your "emergency" money could be worth noticeably less on the very day you need it.
• Fixed-term deposits: early-withdrawal restrictions defeat the purpose of a fund you may need at short notice.
• Cash at home: no interest, a theft risk, and too easily raided for non-emergencies.

The ideal vehicle is a dedicated savings account. The Mintbridge Reserve earns 1.75% p.a. with no minimum balance, no account fees, and same-day transfer to your current account.

How to build it: a step-by-step plan

Common mistakes to avoid

• Combining it with your everyday account. A separate account creates deliberate friction that prevents accidental spending.
• Choosing an arbitrary round number. "CHF 20,000" may sound reassuring but could be far above or below what you actually need. Base your target on your real expenses.
• Raiding it for non-emergencies. A planned car service is not an emergency; a new phone is not an emergency. Set up separate savings goals for predictable large costs.
• Stopping once you hit the target. Inflation erodes the real value of your fund. Review your target each year and top it up.

How Mintbridge can help

Our Mintbridge Counsel reviews your income and spending patterns, suggests a personalised emergency-fund target, automates your monthly contributions, and quietly alerts you if your fund slips below target. Available around the clock in the app, at no additional cost.