Banking
How Much Should Your Emergency Fund Be in Canada?
How big an emergency fund should be (3 to 6 months of expenses), where to keep it, and how much interest it can earn: 2.8% at the best online savings account we track versus 0.48% at the big banks on average.
How much should I have in an emergency fund?
A common guideline is 3 to 6 months of your regular living expenses. Aim for the higher end if your income is irregular, you’re self-employed, you have dependants or you’re the only earner.
| Monthly expenses | 3 months | 6 months |
|---|---|---|
| Top$2,500 | $7,500 | $15,000 |
| $3,500 | $10,500 | $21,000 |
| $5,000 | $15,000 | $30,000 |
Where should I keep my emergency fund?
In a safe, easy-to-reach account: a high-interest savings account is the usual choice. Oaken Savings Account pays 2.8%, the best ongoing rate we track; the big banks average 0.48%.
| 3-month fund | Interest a year at 2.8% (Oaken Savings Account) | Interest a year at 0.48% (big-bank average) |
|---|---|---|
| Top$7,500 | $210 | $36 |
| $10,500 | $294 | $50 |
| $15,000 | $420 | $72 |
Compare every account’s ongoing and welcome rates on the savings accounts page; rates were checked 2026-11-02.
Check that the institution is a CDIC member (or covered by a provincial insurer for credit unions); eligible deposits are protected up to $100,000 per category at each member.
Should my emergency fund be in a TFSA?
It can be, if you have room: the interest is tax-free and withdrawals are allowed any time. The room you withdraw comes back only on January 1 of the next year, so re-depositing in the same year can cause an over-contribution.
Can I keep my emergency fund in a GIC?
Only part of it, and only in a cashable GIC. Non-redeemable GICs lock your money until maturity, which defeats the purpose of an emergency fund.
How do I build an emergency fund from zero?
Start with a first goal of $1,000, then one month of expenses. Set up an automatic transfer on payday, put windfalls like tax refunds toward it, and keep it in a separate account so it isn’t spent by accident.
When should I use my emergency fund?
For true emergencies: job loss, urgent repairs, medical or family costs. Using it instead of a credit card at about 20% interest saves money; refill it as soon as you can.
Keep reading
Banking50/30/20 Rule: How to Make a Budget in CanadaA simple way to make a budget in Canada: track your take-home pay and spending, split it with the 50/30/20 rule, and automate savings, with worked examples for three incomes.- BankingHow Much Interest $10,000 Earns in a Savings Account in CanadaWhat $10,000 earns in one year at 15 Canadian savings accounts, with welcome rates and ongoing rates combined. Best ongoing rate: Oaken Savings Account at 2.80%.
- BankingBest TFSA Savings Accounts and GIC Rates in CanadaWhere to keep cash in a TFSA: the best savings and GIC rates we track (2.80% savings, 3.75% for a 1-year GIC), how much your TFSA would earn, and what to check before you open one.
BankingHow Employment Insurance (EI) Works in CanadaHow much EI pays in 2026, who qualifies, how long benefits last and how to apply, with the official figures from the Government of Canada.
Official sources and further reading
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