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Where to put your emergency fund?

Money market funds are a great choice because they're safe investments with values that don't change from day to day.

Protect your cash

For your emergency fund, you'll want to choose investments that are:

  • Safe from market risk. You want to know that your money will be there when you need it—especially in times of market or economic turbulence.
  • Easy to access. This will ensure you'll be able to take care of your emergency quickly!
  • Interest-bearing. The point of an emergency fund isn't to make money, but don't turn down the opportunity to earn interest on your savings.

Your fund choices

Vanguard Prime Money Market Fund* is a great option for your emergency stash. Like all our money market funds, it's a low-risk investment that offers a competitive yield and easy access.

Tax-exempt options

The interest you earn on your money market fund will be taxable, unless you choose a tax-exempt money market fund*. You can save even more if you live in one of the following states:

  • California
  • New Jersey
  • New York
  • Pennsylvania

It's important to note that yields on tax-exempt funds are usually lower, so they only make sense if you're in one of the highest tax brackets.

The money market settlement fund

In addition to the money market fund you select for your emergency cash, all new accounts will include Vanguard Federal Money Market Fund** as the settlement fund.

This fund is used to pay for and receive proceeds from brokerage transactions, including Vanguard ETFs®, and other account activity.

We'll set up this fund with a zero balance, and you'll need to put money into it to pay for any buy orders you place.

Let us help you

We can help you build your safety net and find the financial stability you need.

Ready to get started?

Start your emergency fund today.

Start your emergency fund

We're here to help

Talk with one of our investment professionals.

Call 800-841-3999

Monday to Friday
8 a.m. to 8 p.m., Eastern time



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Usually refers to investment risk, which is a measure of how likely it is that you could lose money in an investment. However, there are other types of risk when it comes to investing.

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Settlement fund

This money market mutual fund holds the money you use to buy securities, as well as the proceeds whenever you sell.