Are you saving for a home? Putting money away for a dream vacation? Maybe you want to get ahead of the holiday season or prepare for upcoming wedding expenses. To keep your specific goals aligned—and to track your progress in each—you might consider opening multiple savings accounts.
How many savings accounts can I open?
The short answer is: as many as you want. There isn’t a limit on how many accounts you can have. You may find it easier to track your progress toward specific goals if you have a separate savings account dedicated to each one. This way, you could take a quick look at the balance in your vacation account, for example, without having to subtract an upcoming house payment or your emergency savings balance to check your progress.
Savings accounts are easy to open and access
Savings accounts are generally easy to open and there’s no disadvantage to having multiple savings accounts as long as you are mindful of the limits on Federal Deposit Insurance Corporation (FDIC) insurance protection in one bank. Moreover, online savings accounts can be opened from just about anywhere and you have the added convenience of 24/7 access to your funds. So, it’s easy to have separate accounts set up to save for a wedding, the holidays, and that dream vacation.
Savings accounts help you plan and track your savings goals
When you have specific accounts dedicated to specific goals, it’s easier to see your progress toward each at a glance. This strategy also might make it easier to plan ahead for other types of future costs. Let’s say your homeowner’s insurance is $900 annually. If you divide that amount by 12, you get $75; so you know if you deposit $75 into the dedicated savings account each month, you’ll have enough for the premium when it comes due. There are a variety of ways you can make your savings accounts work for you once you identify your needs and goals.
Earn interest and peace of mind
Of course, one of the reasons to put your money into a savings account is to allow it to earn interest while you save. With that in mind, consider that online banks tend to pay higher interest rates on savings accounts than those offered by traditional banks. But whether you open a traditional savings account at a brick-and-mortar bank, an online savings account—or both—at FDIC-member banks your deposits are insured by the FDIC up to the maximum amount allowed by law.
When you’re ready to set a multiple account savings strategy into motion, you’ll want to do some research to find the best savings account for you. Be sure to compare minimum balance requirements and fees, along with interest rates and customer service reviews. You also may want to check out this savings calculator to get a sense of your potential earnings and see how different banks stack up.
Last Edited: November 27, 2017