What an Emergency Fund Is An Emergency Fund is exactly what it sounds like. It’s money that you’ve set aside to deal with the unexpected. It’s money that you can have access to quickly. It’s money that will save you money over time because you won’t have to take out a loan, with friends or a financial institution. Right now, you may be thinking that you already have an Emergency Fund. The truth is, you probably don’t. Why an Emergency Fund is Not a Savings Account When you opened your checking account at your credit union or bank, you more than likely also opened a savings account. You may have had some money stashed away there, but ended up spending it.