Resource Library

Equity gives you the power to tap into the sizable investment you made when buying your home and the thousands of dollars you’ve put toward mortgage payments. If you’re a homeowner in need of cash, borrowing against your home equity certainly offers a variety of lending options. But how do you know which one to choose?

Once you have saved enough to cover six months of expenses and have extra cash, you might consider investing the additional funds. You can boost your returns on any excess money with a certificate of deposit, or CD. A CD is a savings instrument offered by banks and credit unions that has a fixed date of maturity and a fixed interest rate. Most CDs require a minimum deposit amount and may offer rates contingent on the size of the deposit. The interest you earn on your deposit depends on the interest rate, the term of the deposit and the compounding method.

Find a way to consistently check in on your savings. Whether it’s an automatic notification of your account balance or writing down a running total of your contributions, finding a way to watch your progress can offer encouragement and accountability to keep going.

For many Americans, a tax refund is the largest lump sum they receive all year. Saving your tax refund is an easy way to boost your emergency fund. When you file your taxes, consider having your refund deposited directly into your emergency account. You can also adjust your W-4 tax form so you have less money withheld and direct the extra cash into your emergency fund.

Learn about the Pros and Cons of a Home Equity Line of Credit (HELOC).