Emergency reserve
The exact event and timing are unknown, such as an urgent repair or income disruption.
Sinking fund
The purpose is known, such as an annual premium or planned purchase.
Why separation helps
Keeping categories distinct prevents a predictable bill from consuming money intended for unexpected problems.
One account can still work
The categories can be tracked separately even if the funds physically share a bank account.
Educational information only. Use current product terms and the rules that apply in your country. For decisions with significant financial consequences, consider an appropriately qualified professional.