Emergency fund (Notgroschen)
A cash reserve for unexpected expenses that is available at any time and not invested in the stock market.
In short
As of 8 October 2026An emergency fund is a cash reserve for unexpected expenses such as repairs or losing your job. German consumer advice centres suggest two to three months of net income, kept safe and quickly available, usually in an instant-access savings account. It is deliberately kept out of the stock market so you never have to sell at a loss in an emergency.
An emergency fund (German: Notgroschen) is your cushion for surprises: car repairs, losing your job. Consumer advice centres suggest two to three months of net income. The money should be safe and quickly available, typically in an instant-access savings account covered by deposit insurance.
Why not in stocks? If you suddenly need the money, prices might be at a low and you would have to sell at a loss. Only with an emergency fund behind you can you calmly sit out market swings. That is why many plans put it before the first savings plan.
Example: you earn 2,000 euros net a month. An emergency fund of 4,000 to 6,000 euros in a savings account covers two to three months. Anything above that can be invested for the long term. The comparison is in the topic Tagesgeld or ETF.
Related terms
As of 8 October 2026 · Educational content, not investment or tax advice.