Do you have an emergency fund? Financial experts agree that having money set aside for unexpected events – like car repairs, medical bills, a job loss, or other emergencies – is a smart financial strategy. How much should you have in your fund? It’s recommended that you have enough money to cover three to six months of living expenses.

The next question is, where should you keep your emergency fund? You want ready access to cash when you need it, but you also want to keep your money secure. We’ll look at where you should – and shouldn’t – keep your emergency fund and options for growing your savings.

Keeping Your Emergency Savings Safe

Your emergency fund should be kept separate from your other savings. Setting aside money for unexpected events, especially through automatic transfers, lets you take control of your finances and gives you peace of mind. While it might be tempting to dip into your emergency fund for other needs, it should be used only for true emergencies. It’s not a vacation fund or backup cash for nonessential purchases.

Places You Shouldn’t Keep Your Emergency Fund

While you don’t want to keep all your savings stashed at home, having some available cash is a good idea. In the event of an emergency, such as a natural disaster, you may not be able to get to an ATM, banking systems could be down, or you might not be able to use apps like Venmo or Zelle. Having cash can help you buy emergency supplies, gas, medicine, food, or other necessities. You don’t need to keep a ton of cash at home. A reserve of no more than $1,000 is recommended.

Don’t hide your cash under your mattress or in the cookie jar. Cash should be kept in a fireproof and waterproof safe, which can protect your money and other valuables from fire, flood, or other damage. Make sure, too, the safe is bolted down so it can’t be carried away in a burglary. You don’t want to be the target of theft, so only share information about your stash with people who really need to know about it.

Your checking account is also a less-than-ideal home for your emergency fund. While the account comes with government insurance up to $250,000, you won’t be earning interest on your deposits. Because a checking account is so accessible with your debit card or checks, it’s easy to dip into it to cover regular expenses. Once again, your emergency fund should only be used for emergencies.

While investing in stocks and bonds (including through mutual funds) is a good strategy for long-term investments such as retirement savings, it’s not the best plan for a shorter-term investment. Here are a few things to consider: If you purchase savings bonds, you won’t be able to cash them for a full year, and if you tap the fund in years one through five, you’ll lose a few months of interest. After five years, you don’t lose anything. Savings bonds make more sense for medium-term savings goals, such as a down payment on a house, where liquidity isn’t such a big concern.