Struggling to build a 'rainy day' fund? These 5 banking tools can help.

Core Insights - Many Americans struggle with financial stability, especially at year-end due to holiday spending and rising everyday expenses, leading to reliance on credit cards [1][3] - Establishing a rainy day fund is crucial for managing unexpected expenses and reducing financial stress [3][5] Importance of a Rainy Day Fund - A rainy day fund is essential for covering small emergencies like car repairs or medical visits, while an emergency fund is for larger financial crises [4] - 37% of Americans cannot cover a $400 emergency expense with cash, and over 60% live paycheck to paycheck, highlighting the need for a rainy day buffer [3] Savings Strategies - Banks offer various tools to facilitate savings, such as automatic transfers, round-ups, high-yield savings accounts, savings buckets, and linked checking and savings accounts [6][11][14][16] - Automatic transfers allow users to save consistently without manual effort, while round-ups help accumulate savings through everyday purchases [7][9] - High-yield savings accounts can significantly increase interest earnings compared to traditional accounts, with some offering rates up to 4% [11][12] Building a Rainy Day Fund - To start building a rainy day fund, individuals should review spending patterns, set short-term savings goals, cut unnecessary expenses, and consider engaging in savings challenges [18][19][20] - A recommended rainy day fund size ranges from $500 to $1,000, while a full emergency fund should cover six months of expenses [21]