Find out exactly how much you need in your emergency fund, how long it takes to build it, and where to keep it earning 3–3.75%.
| Your Situation | Recommended Fund | Why |
|---|---|---|
| Stable full-time employment, dual income household | 3 months | Low job-loss risk, income replacement quick |
| Single income household, stable job | 6 months | No backup income if job lost |
| Contract worker or seasonal employment | 9 months | Income gaps between contracts |
| Self-employed / freelancer | 9–12 months | Variable income, slower unemployment access |
| Health condition or specialized job | 12 months | Harder/longer to replace income |
| Pre-retirement (55+) | 12 months | Protect investments from forced drawdowns |
Best rate for fully liquid savings. No minimums, free e-Transfers, CDIC insured. Transfer to chequing within 1–2 business days in an emergency.
Highest rate at $19/month if your balance is $5,000+. Instantly accessible via KOHO Mastercard — most liquid option.
Better than Big 5 savings accounts with instant access. Good for part of your emergency fund that you want fully liquid.
Keeping your emergency fund at RBC, TD, BMO, Scotia, or CIBC costs you $100–375/year in lost interest on $100.
Don't lock emergency funds in GICs. You can't access non-cashable GICs in an emergency without penalties.
Keep emergency funds separate from your chequing account. Out of sight = harder to spend accidentally.
KOHO earns 3% on your balance — automatically, no action required. Start building your emergency fund while earning real interest. Get $100 free when you sign up.
Get $100 With KOHO →The standard recommendation is 3–6 months of essential living expenses. For a Canadian household spending $3,500/month on essentials, that's $10,500–21,000. Self-employed Canadians should target 9–12 months due to income variability and EI limitations.
Either works, but a TFSA is slightly better because any interest earned is tax-free. However, if you withdraw from your TFSA, you don't get that room back until January 1 of the next year — a potential downside if you need to re-contribute quickly. Many Canadians keep their emergency fund in a high-interest savings account outside their TFSA for flexibility.
Yes. Having an emergency fund doesn't affect your EI eligibility in Canada. EI eligibility is based on your employment record, hours worked, and reason for leaving — not your savings level. Your emergency fund serves as a buffer while EI applications are processed (typically 28 days).
EQ Bank's HISA at 3.75% is the best option — fully liquid, no minimums, CDIC insured. KOHO also earns 3.0% with instant card access. Both are significantly better than Big 5 banks' 0.01–0.05% on savings accounts.