How many saving accounts can you have? Can you have multiple accounts in the same bank? Are saving accounts worth it? If you want answers to any of these questions then you have tapped on the right article. Here we will tell you all about multiple savings accounts so that you can have maximum savings.
Saving accounts are life savers. You should always transfer some money or a particular amount into your savings account as soon as you receive your income. This not only helps in building your emergency funds but you also get interest on your savings account. So, some extra money is added into your account by the bank from time to time.
It is even better if you have multiple savings accounts. This way, you can bifurcate your savings for your different needs so that your main savings amount doesn’t get affected. Having multiple savings accounts will also help you to save more money than usual.
How Many Saving Accounts Can You Have?
Most of the American banks don’t have any restrictions on the number of savings accounts. So, you can have as many savings accounts as you want. It totally depends on your needs and your capacity to manage multiple accounts. If you can’t manage multiple accounts then it would be a waste of time to open multiple accounts.
You can open multiple accounts in the same bank of different banks depending upon the interest they offer. If you’re starting with multiple savings accounts and you think it can be difficult for you to manage those accounts then you can open all your savings accounts in the same bank.
How Many Savings Accounts Should You Have?
Now that you know how many saving accounts can you have, let’s focus on how money saving accounts you should actually have. Well, you can have as many savings accounts as you want. It totally depends on your needs. You can have different savings accounts for your different needs like-
- Emergency funds
- House funds ( for rent, down payment of your house, house repair)
- Car funds (Down payment, repair, fuel)
- Health funds (For medical bills)
- Vacation and big purchase funds
- Retirement funds
When you’re starting with multiple savings accounts, you can have these accounts and any other accounts as well according to your needs.
What Do Experts Say?
Our finance experts you must have at least these four savings accounts, if nothing else-
Short Term Emergency Funds
In these funds you should have enough savings so that you can survive for 6 months easily and it will provide you support when need emergency cash immediately. If for some reason you lose your job or face any medical emergency and can’t earn money then this fund can easily help you.
Long Term Emergency Funds
In long term emergency funds, you should have enough money to survive for the next 12 months. We have recently seen Covid-19 pandemic where everything was shut for a whole complete year. Many people lost their jobs or even worse, many people lost their main earning member. In such conditions, it was somewhat easy for people to survive who had long term emergency funds.
It is definitely essential to have savings in your retirement funds. You should have a good amount of money in your retirement funds. So that when you can’t work, you don’t have to compromise on your lifestyle.
Medical emergencies never knock your door before coming, they can come anytime. In this time, the medical bills can go really long so you should always have a good amount of money in your savings account, so that you don’t have to cut on other expenses if you face any medical emergency.
Points to Remember Before Opening Multiple Saving Accounts
Now that you know how many saving accounts can you have and how many savings accounts you should necessarily have. Let’s see the important points that you must consider before opening multiple saving accounts.
Interest Rate by Bank
You should always open your savings account in a bank where they provide a higher interest rate on savings accounts. The bank will automatically deposit the interest into your savings account from time to time. It will help you in building your savings.
Zero Balance Savings Account
Most savings accounts have a minimum balance amount. If you ever open multiple savings accounts, make sure that they are zero balance accounts. So that you don’t end up spending your savings on the minimum balance fine.
Make sure to do a deep research on the internet, check ratings and reviews of different banks before making a final decision. Always remember that it is your savings, you should put it in the safest hands.
Only Make Accounts That You Will Need
If you don’t have a car, don’t make a savings account for the car. Before starting with a new account, think again if you actually need it or not. If you don’t need it then don’t open it because after all it’s you who will have to manage multiple accounts. If you don’t need an account then it will only increase your burden, nothing else.
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Top Reasons to Have Multiple Saving Account
Keeps You on Track
It is the easiest way to track your savings. You can save more money for multiple purposes. It disciplines you to spend only a particular amount on something and controls your urge of overspending.
Easy to Organize and Manage
When you have multiple accounts for multiple purposes, it gets easier to organize them. You know how much money you can spend on your car so you don’t end up over spending on it.
It Doesn’t Affect Your Credit Score
If you think that having multiple accounts can negatively affect your credit score then you’re wrong. Savings accounts don’t work like credit cards so it doesn’t affect your credit at all.
Saves You From Overspending
If you know how much money you can spend on your vacation then it saves you from overspending. If you have only one savings account with a big savings then it can get difficult to control your urge. You might end up overspending on things.
Results in Maximum Savings
When you have multiple accounts then you know that you have to put a particular amount of savings in each account so it results in maximum savings.
Now you know how many savings accounts can you have and all the benefits of having multiple savings accounts. You can start with fewer accounts in the starting and once you learn how to manage multiple accounts, you can open more accounts.
Even the finance experts suggest having multiple savings accounts so that you don’t have to take out a loan when you need money, instead you can use your own money. The only problem you might face can be organizing multiple accounts but with time you’ll learn that.
FAQs- Frequently Asked Questions
Q1- How much interest does a saving account earn?
There is no fixed interest rate for savings accounts. Different banks provide different interest rates on savings accounts. You can check and compare the interest rates of various banks on the internet.
Q2- How many saving account can I have?
You can have as many savings accounts as you want. But we will suggest you to have only the necessary accounts so that you don’t end up giving all your time in managing multiple saving accounts.
Q3- Should I have multiple savings accounts?
Definitely. It can be the best decision to increase your savings and organize your money. It has many other benefits as well like, it keeps you on track and you don’t end up overspending on any particular thing.