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banks usually offer savings accounts exactly for this purpose. they are very low percentage, so you don't get much income from it (unless the saving are like upwards of tens of thousands USD). the main benefit is that its usually enough to offset inflation
Fully online banks offer a significantly higher percentage with the downside being you have no physical place to withdraw from in an emergency (most have strict ATM limits). I keep an emergency fund in a big corpo bank so I can get it anywhere in the country, then all the other money is in a fully online savings account.
This is much better than it all sitting in a checking account gaining nothing, but maybe not quite what they meant if they already do this.