You Can Track Your Savings for Different Expenses Easier

Are you saving up for a down payment for a car and house? Want to create an emergency savings account that should only be touched in the event of a serious emergency or event? Or maybe you’re trying to save for a TV or new computer?

Having multiple savings accounts devoted to different things can make saving and tracking these amounts much easier. It also can prevent you from being tempted to touch your emergency fund – if it’s out of reach and you have other savings accounts, you’re less likely to take money out of your emergency cash.

Some banks and credit unions offer the ability to create multiple folders for you to track your savings. Depending on the financial institution, these may count as different savings accounts or it could just be a feature within the account. For those that don’t offer this utility though, you may still want to get multiple accounts for your needs.

In turn, many financial institutions also offer automated savings. You can set up dates throughout a month where they automatically add an amount that you specify to these folders or different accounts from your checking account to make saving easier. Some also offer you other automation options. For example, if you make a purchase with your debit card, the bank will automatically deposit $1 into a savings account for you. These solutions make it so you don’t have to think about saving and you may be pleasantly surprised when you check those accounts.

Use Bonuses from Multiple Banks

Different banks and credit unions will offer different perks when it comes to your saving accounts. If you meet certain requirements, you could be eligible for monetary bonuses. Usually, they require you to have a certain amount in the account for a set period of time. Once you meet that, you’ll be rewarded.

Better Protect Your Money

The Federal Deposit Insurance Corporation (FDIC) protects savings accounts up to $250,000. If you have more than $250,000, you should absolutely have more than one account for your finances. If you keep all that money in one bank and something happens to the bank, any money over the $250,000 will be not covered and lost.

Always make sure that savings accounts you’re considering are insured by the FDIC before opening them.

How you approach your finances, your savings goals, and how much money you have will determine whether or not you need multiple savings accounts. If you have a hard time not touching that emergency fund, it’s a good decision for your future. If you have more than $250,000, though, it is absolutely recommended that you have more than one savings account.

Want more advice on saving? Join the RaptorFi Financial Planning Network.