New Delhi, May 18 -- Unforeseen circumstances can completely take us by surprise. The best way to combat this is to ensure having a contingency fund.

An emergency fund is an important component of financial planning. It acts as a financial buffer during unexpected situations such as medical expenses, loss of employment, or urgent repairs. While there are several places to put an emergency fund, a savings account is often the easiest route.

A savings account provides security and earns interest while being accessible. Its instant liquidity makes it suited for managing financial uncertainties without dipping into long-term investments.

What is an emergency fund, and why does it matter?

An emergency fund is money set aside for unforeseen...