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Saving for a rainy day

A rainy day fund can help make life's small surprises easier to manage. Learn how to build, manage and use a fund so you feel more prepared if something unexpected comes up.

Last updated: 10/6/2026

Person holding a transparent umbrella outdoors, wearing a denim jacket. The background shows a wet pavement and buildings

What is a rainy day fund? 

A rainy day fund is money you set aside for smaller, unexpected expenses that crop up from time to time. It’s not for planned spending or big emergencies, but for those everyday surprises that can throw your budget off course. 

Think of it as a first step in preparing for the unexpected. It won't cover every situation but, for many households, it can smooth out some bumps that come up from time to time.

Keeping this money separate from your regular spending, and money you’re saving for other purposes, makes it easier to leave untouched until you really need it. 

In this guide

What is a rainy day fund used for?  

A rainy day fund is designed to help you manage unplanned but manageable expenses such as: 

  • Car repairs or MOT issues 

  • Replacing a broken washing machine or fridge 

  • Minor home repairs that can’t wait 

  • Unexpected bills or fees 

  • Emergency dental treatment 

  • School trips or activity fees 

It’s not for planned spending like holidays or birthdays. You’ll want to keep it separate in case of genuine surprises. 

Is a rainy day fund the same as an emergency fund? 

They sound similar, but they’re not the same. Each has a different job. 

  • Rainy day fund: Save £500–£2,000 for small surprises like car repairs, a broken appliance or an unexpected bill. Keep this money somewhere you can usually get to it quickly, depending on the account

  • Emergency fund: This is your bigger safety net. Many people choose to build up three to six months of living costs. It's typically used for major problems like losing your job or getting seriously ill 

Most people start with a rainy day fund, then build an emergency fund. Having both can help you feel better prepared for everyday surprises and bigger life challenges.

Read more about emergency funds or calculate how much to save in one. 

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How much should you save for a rainy day? 

The amount you save in a rainy day fund will vary depending on your situation. Some people choose to start with £500 to £1,000, which may help with certain minor, unexpected costs, such as a car repair or broken appliance.

If you have children, own a home or rely on your car, you may choose to save a bit more. The right amount depends on your situation and what would help you feel secure. 

These examples show what some people choose to save, but they're not rules:

  • Single person renting: £500–£1,000 

  • Family with children: £1,000–£2,000 

  • Homeowner: £1,000–£2,000 

Start with a target that feels realistic for you. You can always build it up over time 

How to build your rainy day fund 

The right way to save will be individual to you, your income, your outgoings and other priorities. Here are some general tips you might want to try to help build your rainy day fund.

  • Set a target: Decide how much you want to save. Start small if you need to, as every bit helps 

  • Open a separate savings account: Keeping your fund separate makes it easier to track and less tempting to spend 

  • Automate your savings: Set up a standing order or direct debit for a weekly or monthly amount. Even £10 a week adds up over time 

  • Top up with spare money: Add any extra cash you receive, like bonuses, refunds or birthday gifts 

  • Review and adjust: If your situation changes, update your target or how much you save 

If you struggle to save regularly, try “rounding up” your spending. This means rounding up purchases to the nearest pound and saving the difference. 

Two people sitting at a table indoors, looking at a digital tablet together. One person is holding a pen. There is a notebook on the table

Where to keep your rainy day savings 

You might need your rainy day fund quickly, so make sure it’s easy to get your money when you need it, depending on the account. Picking the right place to save helps you reach your goal and stops you from spending it on other things. 

  • Easy access savings account: Lets you take out your money quickly for emergencies. The interest isn’t always high, but you can usually get your money quickly for emergencies

  • Cash ISA: You can earn interest without paying tax, up to a limit each year. Some ISAs might let you take money out when you want while others don’t, so check the rules 

  • Current account with savings pot: Some banks let you set up “pots” for your savings, so you can keep your rainy day money separate and move it easily 

Think about what’s important to you: quick access or keeping your money safe from spending.  

Keeping your fund separate 

Put your rainy day savings fund in its own place. That could be a separate account, a savings pot in your banking app or even a with different bank. Choose an account that isn’t linked to your debit card or everyday spending. This helps you: 

  • See exactly what you’ve saved 

  • Avoid dipping into it for non-essentials 

  • Get to it more easily when you really need it 

Using your rainy day fund (and how to rebuild it) 

If you need to dip into your rainy day savings, that’s exactly what the money is there for. Using it doesn’t mean you’ve failed at saving, it means you planned ahead. 

After you’ve used your fund, try to rebuild it as soon as you can: 

  • Return to your usual saving routine, even if it’s a small amount 

  • Add any extra cash you receive (gifts, side income, bonuses, etc) 

  • Review your budget to see if you can save a bit more 

Keeping your fund topped can help you feel better prepared for the next surprise.

Reviewing your fund over time 

Your financial situation can change for lots of reasons. So it’s important to review your rainy day fund regularly, ideally every few months. Take a moment to check and ask yourself a few simple questions: 

  • Does the amount you’ve saved still feel right for your current needs? 

  • Have your monthly expenses or circumstances changed (eg a new job, moving home or starting a family)? 

  • Do you need to adjust how much you’re putting aside?  

  • Do you need to change or how easy it is to access your money?  

By taking a quick look at your fund now and then, you can make sure it always matches your needs and plans. That way, you stay on track and have peace of mind for whatever surprises may come your way. 

Key takeaways 

  • A rainy day fund helps you handle life’s small surprises without stress 

  • Aim for £500–£2,000, depending on your needs 

  • Keep your rainy day fund separate from your other savings, including your emergency fund 

  • Make sure the money’s separate from your spending but easy to access if really needed 

  • Automate your savings to build your fund over time 

  • Review and rebuild your fund as needed 

Start your rainy day fund today. We can help with that  

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Common questions about rainy day savings

  • Aim to save £500–£2,000 in your rainy day fund, depending on your situation. Start small if you need to and build up over time.  

  • Yes, if the cash ISA you’re considering offers easy access and suits your needs. Check the rules before opening an account. Read more about how ISAs work 

  • A rainy day fund covers small, everyday surprises. An emergency fund is for bigger events, like losing your job. Read more about saving an emergency fund

  • Read more

  • If you’ve used some or all of your fund, get back to your usual saving routine as soon as you can. You can also add in any extra cash you receive, such as from a side income, bonuses or gifts. Review your budget often to see if you can save more. 

  • A savings account is safer and may pay interest on your money. Keep your fund somewhere you can access it quickly and separate from other savings such as your emergency fund. 

  • It’s best to keep it for genuine surprises. Save separately for holidays, a car, birthdays, big events like a wedding or regular bills. 

    • Not setting a clear target: Without a goal, it’s easy to lose focus or spend the money on other things 

    • Mixing your fund with other savings: This makes it harder to track and easier to spend 

    • Using the fund for planned expenses: Keep it for genuine surprises, not holidays or regular bills 

    • Not reviewing your fund: Your needs may change over time, so check your fund now and then 

    • Making it too hard to access: If it’s difficult to get to your money, you might end up using credit instead 

Savings to suit you 

  • Easy access savings

    Keep your money somewhere safe, earn variable interest, and withdraw whenever you like. Browse our easy access accounts 

  • ISAs 

    Save tax-free with a fixed or variable rate of interest, or both. Choose from an Online ISA, Easy Access and Fixed Rate Cash ISAs 

  • Fixed rate accounts 

    Saving for the longer term? Earn a fixed rate of typically higher interest by limiting access to your money for a fixed time

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