Question

How is an emergency fund similar to and different from a savings fund?

Answer 1

Answer:

An emergency fund is a certain amount of money set aside for emergencies, whatever those might be. It's kept in a very liquid form, whether it be cash or in a checking/savings account nearby. Savings are what you set aside for the future.

Answer 2

Answer:

An emergency fund is an instantly available source of money in any situation to face the financial dilemma, the situation can vary from individual to nation, according to most financial planners an emergency money should contain at least three to six month worth of expenses.

while on the other hand saving funds are those funds which you saved during your normal life to meet your expenses in the coming future.