Piggy Banks small and large

Long-term saving for the future will always be a key component of any savvy financial plan, but for many of us, the recent pandemic highlighted, in living color, the incredible importance of having a separate, dedicated Emergency Savings Account (ESA). In fact, we’ve heard from many of our clients, that the need to establish this kind of “rainy day” fund has pushed itself right to the top of the “get ‘er done” list. The unexpected emergency has a way of presenting us with a new reality – and that’s why, at Monona Bank, we highly recommend our clients open a separate, designated Emergency Savings Account.

Why do I need a separate emergency savings account – especially if I already have a savings account?  Simple. Think of an ESA (Emergency Savings Account) as the account that will be there when you need it most – for the unplanned medical bill, home or car repair – or even for the unexpected job loss. Remember, this separate savings fund doesn’t have to be giant – just realistic. It can be easily funded with simple, small deposits made weekly, bi-weekly or monthly, and it won’t interfere with your financial savings plans devoted to providing things you’d like to purchase in the future.

An emergency savings account will help to absorb some of the stress when the unexpected pays a visit, and will allow you to focus on getting through the crisis, rather than figuring out how to pay for the unplanned expenses.


Some of the most common emergency events we’ve seen clients faced with include:

  1. Unexpected Job Loss
    Losing a job, especially when you weren’t expecting it, can be very scary. Being able to still pay your bills, while you look to find a new job can seem hopeless. An emergency savings account simply buys you some time. Time to not only process the loss of your current job – but time to take the opportunity to think through what your next career move will be, without rushing into a position you may or may not want to take. 
  2. High Medical or Dental Bills
    Medical emergencies can quickly lead to maxing out your deductible, or, worse, having to take days off from work with no pay. A well-funded emergency account is perfect for covering the associated unexpected costs. It will not only eliminate the scramble to come up with cash, but it will prevent the need to take out high-interest loans or to tap into high-interest credit cards. Peace of mind allows you to mend quicker, and focus on what really matters throughout the ordeal.
  3. Home Repairs
    Whether it’s your first – or your fifth – owning your own home is exciting. But, with living in your new abode, comes wear and tear. And with wear and tear, comes – yep, you get it – home repairs. Of course, the most major repairs always seem to pop up when you least expect them. And, sadly, even though you likely have homeowner’s insurance, most of the unexpected expenses are simply not covered by even the best policies. So, when that pipe breaks or you find a pretty spectacular leak in your roof, the expense is on you to get it fixed. No worries, having an emergency savings account provides the reassurance you need to get whatever home repair made, without worrying about what you will have to give up in your budget to cover it.
  4. Auto Repairs
    We can all agree that the “check engine” light is never a welcome sight. It usually means more money to spend, and more time off to take your car in to get it fixed. Worse, repair costs have an annoying ability to add up quickly. Yep, this is a perfect candidate for an emergency savings account. The cash is there to manage the expense with little drama, and the focus is on getting your foot back on the gas pedal and rolling down the road again.

By now, we’re guessing you are in agreement that the key word here is “unexpected.” Yep. Life throws us some not so fun curve balls, and the best we can do is to try to be prepared for them. A separate emergency savings account is a good solution – and one that we, as your financial partner, highly recommend. Dedicated to the curve ball, it can help ensure you have backup funds set aside to cover yourself today, and well into the future. 

OK! How do I open an ESA? Monona Bank works hard to make it easy for you to quickly open an additional savings account – over the internet – through MononaBank Online. Log in today and start saving.

Rainy days await. Be ready.



If you have questions about opening a new emergency savings account or need ideas how you can save more in your budget, email us at customercare@mononabank.com or give us a call at (608) 223-3000. Our team of trusted Banking Advisors are here to help you reach your financial goals, and one great way to safeguard your savings is by creating an Emergency Savings Account today!