How big should your emergency fund be, and how long will it take to build?
On R15 000 of essential monthly spending, three months of cover is R45 000 - saving R2 000 a month gets you there in 1 year and 10 months.
In 30 seconds
- 3 months of essential spending is a sensible first target - bond or rent, food, transport, insurance, school fees; not income.
- 6 months or more if your income is irregular or one salary carries the household.
- Interest up to R23 800 a year is tax-free for under-65s - at 7%, you need about R340 000 saved before any of it is taxed.
What the fund is for
An emergency fund is money you can reach within a day or two, kept for things that are both urgent and unplanned: losing an income, a medical excess, a car repair you need to get to work.
Without one, the emergency goes on a credit card, a personal loan or a savings-pot withdrawal - all of which cost far more than the interest the fund would have earned.
How many months?
- Start with what you cannot stop paying. Add up the bond or rent, food, transport, insurance premiums, school fees and minimum debt payments. Leave out eating out, subscriptions and holidays - you would cut those first.
- Three months is a good first target for a stable salaried job with a second earner in the house.
- Six months or more if you are self-employed, on commission, the only earner, or in an industry that is cutting jobs.
The three-to-six-month range is a common planning rule of thumb, not a figure from SARS, Treasury or Stats SA. Pick the number that would let you sleep if your income stopped tomorrow.
Where to keep it
- Instant or near-instant access: a money market or notice account, not the cheque account you spend from.
- Not in shares. Markets tend to fall at the same time as people lose jobs, so the fund could be smallest exactly when you need it.
- Interest is tax-free up to R23 800 a year for under-65s and R34 500 for 65 and older (SARS Budget 2026 FAQ). At 7%, you would need about R340 000 saved before you paid any tax on the interest.
- A tax-free savings account works too, but every rand you take out still counts against your lifetime limit, so you cannot refill it for free.
What the banks pay on those accounts right now, from their own rate pages:
| Bank | Instant savings | 32-day notice | 12-month fixed |
|---|---|---|---|
| Absa | 6.10% to 7.75%Instant Savings | 6.15% to 7.20%Notice Select (32-day) | 7.35% to 7.70%Fixed Deposit |
| African Bank | 1.00%MyWORLD Account (primary, positive balance) | 6.32% to 7.17%32 Days Notice Deposit | 7.26% to 7.49%Fixed Deposit |
| Capitec | 2.00% to 6.25%Access anytime savings plan | 6.45% to 7.60%32-day notice deposit | 6.85% to 7.45%Fixed-term savings plan (single deposit) |
| Discovery Bank | – | 7.45%32-day Notice Savings Account | 7.50%Fixed Deposit Account |
| FNB | 5.90% to 6.50%Savings Account | – | 6.30% to 7.50%Flexi Fixed Deposit |
| Investec | 7.05%PrimeSaver | 7.75%SmartRate Notice Deposit (0% on demand) | 7.61% to 7.69%Fixed Deposit - Fixed Rate |
| Nedbank | 4.75% to 6.25%JustSave | 5.95% to 7.80%32Day Notice | 6.60% to 7.15%Fixed Deposit |
| Standard Bank | 4.20% to 4.50%PureSave | 4.54% to 7.47%Notice Deposit (32-day) | 7.85% to 8.15%Fixed Deposit |
| TymeBank (GoTyme) | 6.00%GoalSave | – | 8.75%Fixed Deposit |
In bank-name order, not a ranking. Rates are tiered and change often - see every product, term and source →
Keep it growing with inflation
Prices rose 4.4% in the year to August 2026 (Stats SA, CPI August 2026). A fund that was three months of spending two years ago now covers less. Re-check the target once a year, ideally when your debit orders change.
How MaxWealth helps
The MaxWealth emergency fund tool measures the cash you can reach in months of your own spending, and a monthly top-up slider shows how long it takes to reach three and six months of cover.
Sources
- Interest exemption R23 800 (under 65) and R34 500 (65+), 2026/27: SARS - Budget 2026 FAQ (checked 15 Oct 2026).
- CPI 4.4% (August 2026): Stats SA - Consumer Price Index, August 2026.
- Months to target and interest earned: our own calculation, shown in the calculator above.
Education, not financial advice. This post explains how the rules and the arithmetic work. It does not recommend any financial product, and your own situation may differ - speak to a registered financial adviser or tax practitioner before you act. Figures were checked against the linked sources on the date above.