Where to Keep Your Emergency Fund Earning Interest

Where to Keep Your Emergency Fund Earning Interest

You’ve finally managed to save up for an emergency fund. Congratulations — this already puts you ahead of a significant portion of the Brazilian population. But now comes a common question: is leaving this money idle in a checking account the best option? The answer is almost always no. There is a way to keep the fund safe, accessible, and still earning interest — without giving up the features that make this money special.

The emergency fund has a very specific function: to be immediately available when you need it, whether due to an unexpected job loss, a health issue, or any other unforeseen event. Therefore, it follows different rules from the rest of your investments. Security and liquidity come first; profitability comes second. But that doesn’t mean you have to give up any earnings.

In this article, we will explore the main options available in 2026 to intelligently store your emergency fund, understand how each works, their advantages and risks, and help you make a more informed decision. If you are still building your fund and are unsure about how much to save, check out this guide first: How much to save in the emergency fund?

What an Emergency Fund Needs

Before discussing where to invest, it is essential to understand the three criteria that any option must meet to be suitable for an emergency fund:

• Immediate or daily liquidity: You need to be able to withdraw the money without bureaucracy and without a long waiting period. Ideally, the withdrawal should be in your account the same day or the next business day.
• Capital security: The invested amount should not be subject to large fluctuations. Variable income, for example, is not suitable for the fund — you might need to withdraw just when the asset is devalued.
• Positive real profitability or close to zero: Ideally, the money should at least keep up with inflation, avoiding loss of purchasing power over time.

With these criteria in mind, see the main options available.

Interest-Bearing Accounts from Digital Banks

In recent years, digital banks have popularized so-called “interest-bearing accounts” — checking or payment accounts that automatically yield a percentage of the CDI on the maintained balance. The CDI (Interbank Deposit Certificate) is a reference rate in the Brazilian financial market, very close to the Selic rate, which is set by the Central Bank. To know the current Selic rate, visit the official website of the Central Bank of Brazil.

Advantages:

• Immediate liquidity — the money is available at any time
• No bureaucracy for opening or withdrawing
• Automatic profitability, without the need to apply manually

Disadvantages and risks:

• Protection by the Credit Guarantee Fund (FGC) applies to some products, but the coverage of payment accounts may vary according to the institution’s regulation — always check the specific conditions of each bank
• The profitability can be changed by the institution at any time
• Not all interest-bearing accounts pay 100% of the CDI; some pay less

Attention to Income Tax: Earnings in fixed-income financial products, such as those generated by interest-bearing accounts, are subject to regressive Income Tax — the longer the money is invested, the lower the rate. For amounts withdrawn within 180 days, the rate is 22.5%; above 720 days, it drops to 15%. Check the updated table on the Federal Revenue website, as tax rules may change.

Daily Liquidity CDB

The CDB (Bank Deposit Certificate) is a bond issued by banks. When you buy a CDB, you are lending money to the bank and receiving interest in return. Daily liquidity CDBs allow withdrawal at any time without penalty — hence they are suitable for the emergency fund.

Advantages:

• Protected by the FGC up to R$ 250,000 per CPF per financial institution (check the current limits on the FGC website, as they may be updated)
• Profitability generally linked to the CDI, potentially reaching or exceeding 100% of the CDI in smaller banks
• Widely available in digital banks and brokerages

Disadvantages and risks:

• Subject to regressive Income Tax (same table mentioned above)
• Smaller banks may offer more attractive rates but involve the institution’s credit risk — hence the importance of the FGC as protection
• Daily liquidity does not mean immediate liquidity in all cases; check the cut-off time for withdrawal for each bank

Tesouro Selic

The Tesouro Selic is a federal public bond sold by the National Treasury through the Tesouro Direto platform. It is considered the lowest-risk investment available in Brazil, as it is guaranteed by the federal government. Its profitability follows the Selic rate, plus a small premium or discount depending on market conditions.

Advantages:

• Issued by the federal government — considered the lowest credit risk asset in the country
• Can be redeemed on any business day with D+1 liquidity (the money is available the next business day)
• Follows the Selic, protecting against interest rate hikes

Disadvantages and risks:

• Subject to regressive Income Tax and also to the custody fee charged by B3 (check the current percentage on the Tesouro Direto website, as it may be updated periodically)
• In case of redemption before a certain period, there may be IOF (Tax on Financial Operations) incidence in the first 30 days
• Not protected by the FGC — but the guarantee is from the federal government itself

For redemptions in less than 30 days, the IOF can erode much of the earnings. Therefore, for the portion of the fund that you might need with maximum urgency, consider keeping a part in an interest-bearing account or CDB with immediate liquidity.

Fixed Income DI Funds

Fixed income funds referenced in DI (also called DI funds) are investment funds that allocate most of their assets in bonds linked to the CDI or Selic rate. They are managed by professional managers and accessible through banks and brokerages.

Advantages:

• Automatic diversification within the fund’s portfolio
• Generally daily liquidity (D0 or D1, according to the regulation)
• Widely available option in the market

Disadvantages and risks:

• Charge an administration fee, which reduces net profitability — always compare net returns after fees
• Subject to “come-cotas,” a mechanism for anticipating Income Tax that occurs semiannually (in May and November), which slightly reduces tax efficiency compared to other products
• Not protected by the FGC (the fund’s assets are separate from the manager, offering structural protection, but different from the FGC)

What to Avoid in the Emergency Fund

Some popular products are not suitable for the emergency fund, even if they seem attractive:

• Real estate funds (FIIs) and stocks: These are variable income assets, with price fluctuations that can make you withdraw at a loss just when you need the money most. If you want to learn more about FIIs as a long-term investment, see: Real Estate Fund: what it is and how it works for beginners
• CDBs with fixed maturity and no daily liquidity: If you need the money before maturity, you may not be able to withdraw or pay penalties
• LCI and LCA without immediate liquidity: Although exempt from Income Tax for individuals, many have a minimum grace period of 90 days or more — making them unsuitable for the fund
• Cryptocurrencies: High volatility and no regulatory protection equivalent to the FGC

How to Organize the Fund in Practice

A common strategy among financial educators is to divide the fund into “layers”:

1. Immediate access layer (20 to 30% of the fund): In an interest-bearing account of a digital bank with instant liquidity — for emergencies that require a response in hours
2. Main layer (50 to 60% of the fund): In a CDB with daily liquidity or Tesouro Selic — for most unforeseen events, with redemption in up to one business day
3. Extended reserve layer (20 to 30% of the fund): In Tesouro Selic or low-cost DI fund — for situations with a slightly longer term, such as a prolonged unemployment period

This organization is just an illustrative example. The most important thing is that all layers maintain liquidity and security, and that you are well aware of the withdrawal rules for each chosen product.

Conclusion

Keeping your emergency fund earning interest is not difficult, but it requires you to understand what you are doing before choosing where to apply it. The secret lies in prioritizing liquidity and security — profitability is a welcome bonus, not the main goal. Products like Tesouro Selic, daily liquidity CDBs, and interest-bearing accounts from digital banks are common starting points for those who want the fund to work in their favor without compromising the function it should fulfill.

Before deciding, compare the current conditions of each product, check the fees charged, consult the FGC limits, and consider your particular situation. The most important thing is that this money is safe, available, and preserving its purchasing power over time.

> Educational Note: This article is for educational and informational purposes only. It does not constitute investment advice, personalized financial advice, or an offer of any financial product. Everyone has a unique financial situation, and the most suitable options may vary. To make investment decisions, consult a certified professional or investment advisor duly registered with the Securities and Exchange Commission (CVM).