A Savings Account is a common account mainly opened during the initial earning days. It is the ideal way to secure your money. The account enables you to make quick repayments and high-value transactions. Just activate the Online Banking services, and you can make seamless transactions. Many prefer holding more than one account for the innumerable benefits Savings Account offers.
Pursue multiple goals
Savings Account is a good investment vehicle that earns you reasonable returns. You can make use of these to realize your short- and long-term goals. Now, investing for multiple goals in a single investment can be challenging. In this case, you often get confused and lose track of your investments. Instead, open multiple accounts so that you can pursue and invest in various goals simultaneously.
Monitor your spendings
You may have linked your Savings Account to several platforms to make instant transactions. You could be using them to pay your utility bills, Insurance premiums, Loan repayments, and other investments. With so many transactions made from a single account, monitoring your actual spending can be a task. Hence, do multiple online Saving Account opening. Dedicate a separate account for each goal. This lets you exercise better control over your finances.
Manage online transactions
Online Banking has indeed made banking simpler than ever. However, technology has also made us more vulnerable to cybercrime and fraud. You should take precautions to secure your finances. Open multiple Savings Accounts and dedicate one account to your online transaction. Keep a lower balance in this account. It acts as a security measure and minimizes unnecessary spending.
How many accounts to hold?
There is no simple answer to this. It all depends on your financial requirement. Ideally, you should not have more than three Savings Accounts. Managing more than three can be tedious. You could have an online Bank Account for different purposes. Have a primary account to make high-value transactions like Loan repayments and investments. Hold a Salary Account where you can secure your monthly income.
Their statements are handy when making Loan applications and filling Income Tax Returns. Open the third Savings Account for savings and investments only. Avoid making any transactions from this account. Consider the minimum balance requirement of the three before opening. You do not want to pay high penalty charges for a non-maintenance of the account balance. If you hold a Salary Account, you need not worry about the maintenance of a monthly balance. Keep all three Saving Bank Account active and operational. Make a few transactions from each account to ensure they do not become dormant.