An Emergency Fund is a way to safely stash your money in a separate account so it's safe from accidental spending.
There are a couple things to keep in mind before you create your Emergency Fund. The most important is this: the funds in an Emergency Fund aren't included in your available balance, and money is not automatically transferred from your Emergency Fund to your available balance to cover a transaction. For example, if you have $100 in your available balance and $300 in your Emergency Fund, and your card is swiped for $125, the transaction will be declined.
Your Emergency Fund will live in a Protected Goals Account—a separate account that's subject to the Simple BBVA Compass account agreement. Your Protected Goals Account will have its own statements, which will show transfers in and out of your Emergency Fund as well as any interest earned.
Here are a few other useful facts about Emergency Funds:
- If you try to edit your Emergency Fund, you will be able to change the target amount and completion date, but you won't be able to change the name or add a memo.
- If you start an Emergency Fund you can't delete it, but you can always transfer the funds out.
- You can only have one Emergency Fund at any given time (at least, for now).
- Even though it's a separate account, you must keep your personal Simple account open in order to have an Emergency Fund.
- Right now, Emergency Funds aren't available for Shared accounts. If you happen to have a Shared account, you can still use this feature from your individual Simple account.
- Money moved in and out of your Emergency Fund will show up in your transaction history and will also be shown on your monthly account statements. Questions? Feel free to , or give us a call at 888-248-0632.
Setting up an Emergency Fund
You can set up an Emergency Fund from the Goals tab. From there:
- Choose how much you want to save (depending on if we need to do some calculations, we may also ask for your annual income.)
- Choose when you'd like to have the money saved by.
- Review a summary of your choices, along with some terms and conditions for opening an Emergency Fund account, and if you're ready hit "Create Emergency Fund".
Emergency Funds and your available balance
When you create an Emergency Fund, we'll automatically move money, every day, from your Safe-to-Spend to the Emergency Fund.
These automatic contributions will not cause you to overdraft; if your Safe-to-Spend isn't enough to cover the daily contributions, the Emergency Fund will be automatically paused until your Safe-to-Spend increases (when your Safe-to-Spend does increase, the daily contributions will automatically start again).
These daily contributions will, however, cause both your Safe-to-Spend and your available balance to decrease. If you have important bills or other automated payments coming out of your Simple account, it's a good idea to keep a close eye on your available balance.
You always have the option of pausing your Emergency Fund, which will stop the daily contributions until you un-pause it. You can also manually transfer funds in and out of your Emergency Fund at any time. Learn all about pausing goals and moving money in and out in the Saving With Goals article.