The saying “Don’t keep all your money in one place” is very important in personal finance. While regular savings accounts have always been a safe way to save money, people now understand the benefit of spreading their savings across different accounts. This has led to the idea of having multiple savings accounts. Having multiple savings accounts means setting up several accounts in one bank or across different banks. You might be wondering whether I can have multiple savings accounts. The answer is ‘Yes,’ you can choose to online open zero balance account and a salary account in the same bank for making UPI payments. But the real question is what the benefit of multiple savings accounts is? Well, read this article to understand about multiple accounts.
How many savings accounts should you have?
It depends on how much money you have saved and your savings goals. For most people, having at least two savings accounts is often suggested to keep their goals separate. Hence, you can have a zero bank account online and a current account or salary account in the same bank to manage your finances.
Here’s how you can split your money across different savings accounts:
- Main account: Have one main account for your major monthly expenses. Link this account to your mutual fund investments, EMI payments, rent, monthly shopping, and other automated bill payments.
- Salary account: Have a separate account to receive your monthly salary. You can close this account when you change jobs. Regularly transfer money from this account to your main account for investments and expenses.
- Joint account: Joint accounts with your spouse helps you better understand your financial assets. Use this account to hold 3-6 months’ emergency funds.
Benefits of Multiple Savings Accounts:
- Multiple savings accounts offer various benefits for different goals. Some banks provide bonuses for opening new accounts, while others offer attractive interest rates. Having multiple accounts lets you enjoy these perks. It is useful for people who want to save money on bills, shopping, dining out, or booking events and services. UPI account makes your payment easier. Multiple accounts help you see your progress toward different savings goals, like buying a house, funding education, or covering medical emergencies.
- If you have only one savings account linked to your everyday checking account, you might be tempted to transfer money for impulsive spending. Especially if you use a banking app that is quick and easy. If you often transfer money from your savings, think about getting a separate savings account that isn’t connected to your main checking account. You can also set up automatic savings plans that regularly transfer money from your main account to your separate savings account.
Bottom Line:
Opening multiple savings accounts for fund transfer can be a good idea if you have different financial goals and want separate funds for each. Before you open multiple accounts, research and compare fees, interest rates, and features to find the best accounts for your needs. You can also choose a zero bank account open online for added convenience.