Your deposits sit and grow in a savings account with compound interest. So, having more accounts means more wealth creation! Besides that, here are 5 other great reasons to use multiple savings accounts.

Set Different Goals

Open a new savings bank account every time you set a new financial goal. Thus, consider maintaining different bank accounts for goals like going on a long vacation, buying a new laptop, and setting aside some cash to finance an emergency. Your savings will be distributed in multiple accounts. Then no one account will have a very high balance. So, you may not tend to draw funds from, say from your emergency account, to spend more for that vacation. To finance frequent requirements, consider drawing money from your primary account.

Automate Savings

Consider setting up automated instant transfers from your primary bank account to the dedicated savings accounts. Then you won’t ever miss saving for your financial goals. Plus you can receive the money in the right place fast. Besides, at any point in time, no one account will have a balance too healthy to tempt you to withdraw money from it for unnecessary spendings. Also, the automated procedure would ensure accuracy and save your time and energy to visit the bank for the transfers.

Check Progress towards Various Goals

Tracking progress in savings for multiple goals is difficult and confusing when it is confined to one account. If you open a new savings bank account for each of your financial goals, you can not just set aside some money and dedicate it to every goal. As the money in all the savings accounts grows with interest, you can monitor the progress in the respective passbooks. However, to check that accurately, make sure that you update all the passbooks regularly. Then if you find that your respective savings have not grown much, consider choosing the best bank for savings accounts to get access to a higher interest rate and other benefits.

Control Overspending

The passbook would also show how frequently you have withdrawn cash from an account. If you find that you have withdrawn mostly for unnecessary spendings, you can control this habit next time. Also, since your savings will be spread among different accounts, you may not feel that one account has extra savings to allow you to overspend. All this can help you check yourself from going over the top.

Get an Emergency Debit Card

Ideally, every savings account comes with a debit card. If you have multiple accounts and one card stops working, you can use another as an emergency debit card as a backup. Besides, the best bank for savings accounts offers various benefits for using its debit cards. These often include cashback, vouchers, free ATM transactions anywhere in India, and even air accident insurance coverage. So, having more debit cards means enjoying more such benefits!

Try to open a new instant savings bank account online by choosing a bank that offers this facility. Then you can open the account from the safety at your home in the current situation.

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