These Simple Emergency Fund Strategies Could Save You in a Natural Disaster

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Multiple Ways to Prepare for the Unexpected

Weather experts are predicting an above-average hurricane season for 2025. In addition, millions of U.S. households are always at risk from other disasters like fires, flooding, tsunamis, tornadoes, and earthquakes. Emergency preparedness experts suggest you have supplies ready in case you need to evacuate or survive in unusual circumstances. While you’re considering non-perishable food, drinking water, and sources of heat and light, don’t forget to consider your financial situation, too.

Not everyone can earmark large quantities of food, supplies, and money for an emergency, but anything you can set aside will likely help in a natural disaster. And if you’ve been able to build an emergency fund, this is a prime time to earn interest on that money with a top high-yield savings account. 

“Disasters can disrupt income, limit access to banking services, and create unexpected expenses like hotel stays, gas for evacuation, or replacing essential supplies,” said Walter English, deputy coordinator of emergency management for Fairfax, Virginia. “An emergency fund allows individuals and families to cover these urgent needs without relying on credit or loans—helping them navigate the first critical days of recovery with greater stability and less stress.”

While some experts suggest saving three to six months’ worth of expenses, your financial situation and goals will determine the ideal amount to aim for in an emergency fund. Any amount you have saved can help maintain your safety and reduce the financial burden of a natural disaster—as long as you can access your money.

Best Places to Keep Your Emergency Savings

Having some cash on hand is key if there is a power failure that prevents ATMs or credit cards from working. To ensure you can still access it when you need it, you’ll want to store the cash in a waterproof and fireproof container.

To supplement your cash on hand, consider putting some of your reserves in accounts where you can earn interest while maintaining easy access. For example, the top-earning high-yield savings accounts and the best money market accounts now each offer up to 5.00% APY. While these rates are variable and won’t likely stay this high through 2025, these accounts offer the flexibility needed for an emergency fund. These rates are also outpacing the current 2.7% inflation rate, which is a plus, because your emergency fund isn’t losing purchasing power over time.

In addition to having cash on hand and other savings earmarked for emergencies, some other financial recommendations include creating a budget, trimming extra expenses, and paying down any high-interest debt, such as credit card balances—which averaged $6,730 per American as of last year, according to Experian. (Learn more about how to prepare for a financial crisis here.)

More Ways to Help You Weatherproof Your Finances

These are among English’s suggested action items to prepare financially for an emergency:

• Establishing strong credit to give you better access to affordable financing should longer-term recovery needs arise.
• Proactively contacting creditors for forbearance or hardship programs that can help avoid unnecessary penalties while recovering.
• Storing important financial documents securely, either in waterproof/fireproof containers or digitally via encrypted cloud storage. This includes insurance policies, mortgage/rent agreements, and banking information.
• Understanding your home insurance coverage before a disaster strikes. Many people don’t realize what isn’t covered—like flood damage—until it’s too late.
• Signing up for emergency alerts from local and state agencies to stay informed of assistance programs as they’re launched.

These are some online sources of additional information:

Being prepared—financially and otherwise—won’t stop a natural disaster, but it can help make it easier to respond. Whether you’re just starting an emergency fund or it’s well established, contributing to it is key—and even better if you’re earning a solid return on your deposits.

“Even modest savings can provide crucial flexibility in the first few days of a disaster response,” English said.