Opening a Savings Account is generally a smart move when managing your finances. It is also the most popular Bank Account, letting you deposit money safely. It helps you earn a modest interest and withdraw the funds anytime. While having a Savings Account is beneficial, have you thought of opening several of them?
It may be unconventional, but it is advantageous. Here are the top benefits of having more than one Savings Account.
Benefits of multiple Savings Accounts
Opening and managing multiple Bank Accounts can be beneficial for the following reasons:
- Better organisation
You can opt for a separate Bank Account for different life goals, such as vacations, monthly expenses, emergencies, education, etc. It also helps you maintain and clearly track your progress towards each goal. This improved organisation minimises your chances of overspending.
- Shields emergency funds
Experts are highly recommended to maintain emergency fund to meet unforeseen expenses. By operating different Savings Accounts, you can reduce the temptation to spend the money on non-essentials. For example, if you save for an emergency and vacation together, you might be tempted to dip into the emergency funds and spend lavishly on a vacation. This lowers the corpus of your emergency funds.
You can conveniently use the Online Banking platforms that the banks offer to track your balance in different accounts.
- Budgeting done easily
With separate accounts, you can efficiently allocate funds from your primary account to the other accounts. This way, you can consistently save for several financial priorities.
- Maximises interest income
Different banks provide varying interest rates on their Savings Accounts. By opening multiple online Savings Account, you benefit from higher interest rates and maximise your earnings. You can also use the Savings Account calculator to track the interest income earned on the accounts.
- Access to multiple Debit Cards
Banks offer Debit Cards that have a daily withdrawal limit. This prevents you from withdrawing a larger sum during emergencies. That is when multiple accounts are beneficial. They provide Debit Cards. Hence, use them wisely when you urgently need a lot of cash.
Process to open a Savings Account
Today, you need not travel to the bank for opening an account. Instead, open a Savings Account online instantly from your couch. It saves the hassle of travelling to the bank and lets you open an account from anywhere and anytime. For this, follow these simple steps:
- Download the Banking app or visit the website of your chosen bank.
- Complete the account opening process and verify your KYC.
- Your bank completes the necessary verification and opens your account quickly.
Having multiple Savings Accounts is indeed beneficial. However, the accounts you pick should match your needs and goals.
