I have goals. I have BIG and small goals. I have important and trivial goals. But most of all, the goals I have require money at some point. I like to put my goals into savings “buckets” or sub-accounts.
I like to organize and prioritize my goals, and one way I do so is through my multiple savings accounts. I currently have four different savings accounts with my online bank, and I’m thinking of opening one more for another goal I recently set. What’s nice about most banks is that you can have one login account and see an overview of all your savings sub-accounts on one screen.
Right now, I have Emergency, Travel, Car and Tax savings accounts. I love that I am able to give each account its own nickname. These are just my online savings accounts. Then I have a more readily accessible everyday savings account that is essentially connected to my everyday checking account. I don’t keep too much money in my everyday savings account because of the very low interest rate. Also, I can quickly transfer funds to my checking account, but that is really the sole purpose of the everyday savings account.
So here is why I have multiple (online) savings accounts to help with my financial goals.
To Track Specific Savings Progress
It’s so much easier to track my savings when I allot money for a specific goal. It helps to simplify how much I need to save when I have different dedicated accounts.
To Prioritize Savings
Since saving for my next vacation is a priority over buying my next car, it is good to put more towards the vacation fund to reach my travel goal faster.
To Motivate Myself to Save More
Seeing how close I am to achieving each savings goal gives me more motivation to save. As I see each account grow, I want to add more to it so that I reach my individual goals faster.
You can automate payments into each savings account or you can put in any extra money that comes your way into your accounts by priority. How you fund the accounts is up to you, but knowing you will have the money when you need it brings a sense of contentment.
When opening multiple accounts, you should choose an account that doesn’t have a penalty for a minimum balance and also, a bank that will allow you open multiple sub-accounts with no fees.
If you feel overwhelmed having multiple savings accounts, this may not be the best savings strategy for you. You should use your savings accounts as a tool and a way to have peace of mind when managing your money. So if having just one account is your thing, do what’s best for you.
Do you keep your money in several accounts or are fine with just one savings account?
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