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When Congress drags its feet and a government shutdown hits, it’s not just federal workers who feel the shock. Paychecks experience delays, hiring freezes ripple through the job market and people tend to pull back on spending, all of which can trickle down to regular households.
If you’re suddenly dealing with a slower paycheck or higher bills, having a robust emergency fund is essential. But that money shouldn’t just sit idle. With the right moves, like storing it in a high-yield savings account (HYSA), it can grow quietly in the background and be ready when needed.
Your Cash Should Do More Than Collect Dust
An emergency fund’s main job is to be there when things go wrong—usually three to six months’ worth of essential expenses. But there’s a big difference between “safe” and “stagnant.”
Putting your money in a regular savings account that earns pennies in interest means inflation is slowly eating away at its value. A smarter move is to put it in a HYSA, where it can remain accessible but grow faster.
Why High-Yield Savings Accounts Are the Sweet Spot
HYSAs are a great home for emergency cash because they combine the two things you need most: accessibility and growth. You can still pull your money out quickly if a shutdown affects your income—but until then, it earns a competitive interest rate.
Here are some of Forbes Advisor’s picks for the best HYSAs.
Capital One 360 Performance Savings Account™
The Capital One 360 Performance Savings Account™ is a no-frills, high-yield online savings option designed to make your money work harder. You won’t find monthly fees or minimum balance requirements, you can open it with any amount and it starts earning interest right away.
Interest is variable, but the account currently offers 3.40% APY. Interest is compounded daily and credited monthly, and the account is FDIC insured. You can move money in or out whenever you like, but there’s no ATM card or direct cash access—withdrawals must go through linked checking or external accounts.
Synchrony Bank High Yield Savings
Synchrony also offers strong rates—currently 3.80% APY—and it stands out for flexibility. There’s no minimum balance requirement, no monthly fees and it offers a rare perk: You can get an ATM card for easier access if you ever need cash fast. That makes it a solid choice if you want to keep your emergency fund within reach without sacrificing yield.
Backup Options If Cash Gets Tight
Even a solid emergency fund can feel strained if a shutdown or a big bill pops up. That’s when having a backup plan can make a difference.
Personal Loans
If you’re facing a large, one-time expense and your savings won’t cover it, a personal loan can help bridge the gap. Rates are usually lower than credit cards, and monthly payments are predictable. Just make sure you borrow only what you need and have a repayment plan in place.
Some banks and credit unions may also provide no-interest loan options to those experiencing pay disruptions due to government shutdowns. These options may require an application, so it is always worth checking in with a lender directly to see what flexible terms they may be able to offer you depending on your circumstances.
0% APR Credit Cards
0% APR credit cards can buy you breathing room by letting you spread out expenses without interest—but only if you pay off the balance before the promo period ends. If you miss that window, you could be hit with hefty interest charges. Think of this as a short-term tool to cover pay disruptions, not a permanent solution.
Bottom Line
You can’t control what happens in Washington, but you can control how prepared you are. A government shutdown might slow the economy, but it doesn’t have to slow down your financial security.
Keeping your rainy-day fund from running dry gives you the best of both worlds: easy access when you need it and steady growth when you don’t. And if the situation gets worse, tools like personal loans and credit cards with introductory 0% APR periods can help bridge the gap.
The key is to think of your emergency fund as more than just a safety net. It’s your financial first responder. And if you set it up right, it’ll be ready to step in long before the crisis hits.
