You've calculated your FIRE number. Great. But on the path to that number, you must have an emergency fund. This is 3-6 months of your expenses saved in cash for unexpected events (a job loss, medical bill, or car repair).

The Problem: Your Bank Is Costing You Money

If your emergency fund is in a traditional checking or savings account (like at a major brick-and-mortar bank), you are losing money every day. These accounts typically pay 0.01% interest. On a $20,000 emergency fund, that's $2 per year.

Meanwhile, inflation is eating away at your money's purchasing power.

The Solution: The High-Yield Savings Account

An HYSA is an online-only savings account that offers a much higher interest rate. Because they don't pay for physical branches, they pass those savings on to you.

• High Interest: Earn 4.0% - 5.0%+ APY. On that same $20,000, that's $800 - $1,000 per year.
• Just as Safe: They are FDIC-insured up to $250,000, just like your regular bank.
• Liquid: You can access your money in 1-2 business days. It's the perfect home for your emergency fund.