Savings accounts are a go-to option for people to keep their money safe and earn interest over time. Many people may assume they only need one savings account for all their funds, but this isn’t always the case. Having more than one savings account makes it easier to manage and track your financial goals.
There are several reasons to open more than one savings account. While there are multiple situations and realities that warrant having multiple savings accounts, here are some of the most common.
Having more than one savings account lets you save for multiple goals. Multiple savings accounts make it easier to track how much you have saved towards each individual savings goal. Instead of keeping all your savings in a single account and struggling to analyze what you’ve deposited, assign an individual goal to each savings account.
Different types of accounts offer different perks. Depending on your needs and financial goals, some accounts may be more suitable than others. Certain accounts – such as a high yield savings account – offer a higher interest rate for higher average balance.
Each account may offer you a different feature, which suits your saving needs differently. By having more than one account, you can take advantage of it all.
If you have ample savings, having more than one savings account can help keep all your money secure. The Federal Deposit Insurance Corporation (FDIC) only insures savings accounts up to $250,000, per insured bank, per depositor. If you have savings of more than $250,000, opening more than one savings account at different banks keep you within the FDIC limit.
Utilizing multiple savings accounts allows you to track your progress towards your goals more easily. It allows you to take advantage of multiple types of savings account, each equipped to help you reach your unique savings goals differently. Finally, when you reach large-scale savings, it ensures you’ve spread your savings properly to still receive FDIC assurances.