Where to save
The money in your emergency fund needs to be secure and easily accessible. At the same time, you'll want to be earning as much interest as you can. A Tax-Free Savings Account (TFSA) is one obvious choice. Under the current rules, you and your spouse can each contribute up to the TFSA dollar limit for the year. Savings accounts, GICs, and mutual funds are all qualifying investments for the TFSA (accessibility depends on investments in the account). Earnings and withdrawals are tax-free.
You might also consider a savings account or a money market fund, as both offer competitive rates, safety, and ease of access.
In addition, you may want to set up a secured or unsecured line of credit. This would enable you to borrow, up to a specified amount, whenever you need to. Repayment terms depend on the type of line of credit.
A CIBC advisor can help you determine an appropriate rainy day fund amount, and identify product solutions that meet your needs.