Chances are, you have more than a single goal when it comes to saving. There may come a time when you find yourself putting money away for retirement, a vacation, education, a new car, and a plain old emergency fund. That's a lot of savings goals to keep track of. That's why for some people, multiple savings goals mean multiple savings accounts. Whether or not multiple savings accounts work for you will depend on your situation. If you're just starting to save, you may find that a single account works best so you can familiarize yourself with the basics of putting away money. Similarly, if you are helping a young person get started on the savings track, you may want to encourage him or her to start out with a single account.
But if you are the point in your life where you want to make sure you're putting away enough money to cover a variety of future expenses, multiple savings accounts may work for you. Some people like to have a savings account that they use strictly for insurance premiums, another that they use for an emergency fund, and a third that they use for their children's higher education. This model has the potential to help people stick to their savings plans and ensure their money is being directed toward its intended goal.
You may also find yourself weighing the benefits of multiple savings accounts when considering how to merge finances with a significant other. Having more than one account may help you diversify how you save without losing focus on your own personal goals. You each may want to start your own emergency fund and have another account that serves as a vacation fund or a down payment for a new home, for example. It all depends on what works for you as a couple. Some find that having their own savings gives them a sense of independence that they find valuable. Others find mingling their finances to be an intrinsic part of life as a couple.
Multiple savings accounts may also be useful when it comes to FDIC insurance. The FDIC (Federal Deposit Insurance Corporation) insures depositors to the maximum amount allowed by law. As we point out on our site, the FDIC legal limit often changes in situations that involve multiple people who hold multiple accounts. It might be smart to talk to your financial advisor to figure out what your insurance options are when it comes to holding multiple accounts.
Ally Bank is committed to making saving as easy, secure and rewarding as it can be. From our convenient Interest Checking Account and competitive Online Savings Account to a flexible Money Market Account and several types of CDs, we have the products and rates to help you reach your financial goals. Learn more by visiting Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.