Why You Should Open Multiple Savings Accounts_Exploring savings options - woman at her computer next to man listening to music

Why You Should Open Multiple Savings Accounts (And How to Manage Them)

Having a savings account allows you to work toward financial goals while taking advantage of savings dividends. These accounts are also ideal for separating your savings from your everyday checking account, keeping your hard-earned cash protected against impulse buys.

Here are the details you need to know about using multiple accounts:

Why Have Multiple Savings Accounts?

When you only have one savings account for all of your savings goals, it’s all too easy to lose track of how much you have saved for what, or to spend a little too much on one goal, thus depleting the progress you’ve made toward another.

Keep Track of Specific Goals

If you’re like most people, you probably have a few short- and long-term goals that cost money. And, if you’re a responsible budgeter, you know roughly how much those things might cost.

Down payment for a future home? Maybe you’re aiming for $25,000. A new car? Perhaps that’ll set you back $15,000. Holiday gifts? Those might total about $500 (depending on how many people to whom you’re giving gifts).

Having unique savings accounts, each dedicated to a single goal, lets you track your progress accurately. Plus, it reduces the likelihood that you’ll accidentally spend $1,500 on holiday gifts, resulting in being $1000 off track for your new car fund.

How Many Savings Accounts Should I Have?

The number of savings accounts you need depends on your unique situation. If you haven’t defined specific savings goals yet, or don’t have emergency savings built up, you’ll probably be fine with just one account for now. However, if you’re planning ahead for different goals, multiple accounts can be beneficial. Here are a few types of savings accounts you may want:

Emergency Fund

Personal finance gurus typically advise people to save between three and six months’ worth of living expenses in an emergency savings account. This will help you out if you ever lose your job or experience another major emergency. Keep this money separate from anything else so you’re not tempted to dip into your just-in-case account.


Once you start outlining specific savings goals, open a new account for each one. You might have a:

  • Home down payment account
  • New car fund
  • Bathroom remodel reserve
  • Holiday gifts supply
  • Emergency vet visit stash for your pets
  • Education fund for your kids
  • Dream vacation fund

There’s no limit to the list of items you may want to buy someday, so there’s no limit to the number of savings accounts you might want to open. However, be sure to stay realistic about your future goals. An accurate budget will help immensely here. Also, be aware of any minimum balance requirements or annual fees. If one of your accounts falls below the minimum balance needed, a fee might set back your progress.

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Annual Expenses

Everyone has necessary expenses they need to make on a regular basis. Many are monthly obligations, like utilities or rent payments, which are easily calculated into your budget. However, there are a few odd expenses that don’t come monthly, but are nonetheless essential. These might include:

  • Car insurance
  • Annual memberships
  • Car registration
  • Quarterly water bills
  • Property taxes

How Can I Balance Multiple Savings Goals?

Listing out your future financial goals can be intimidating, especially when you do it for the first time. Don’t let large dollar amounts or multiple savings accounts intimidate you, though. With a smart budget and careful savings strategies, you can work toward your goals responsibly.

To keep your savings goals properly balanced, decide how you want to allocate funds. Here are a few pointers:

Establish Priorities

Step one is to determine which goals are the highest priorities and which are the lowest. Your debt payments savings account may be your most important priority, so it might be the account receiving the most contributions–either in frequency or dollar amount. Meanwhile, your dream vacation fund may be the lowest priority, so you might only route funds to it when you have some to spare.

Know Your Deadlines

Some of your financial goals might have hazy timelines, like buying a house someday (you just don’t know when). Meanwhile, others will have irrefutable deadlines, like holiday gifts.

Knowing how much you need is only half the battle; it’s also essential to know when you need that money. Then, with each paycheck you can strategically decide which savings goals to work toward with your discretionary income.

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Set a Strategy

Determine how you’re going to treat each savings account when you open it. Your holiday gift savings account strategy might be to keep piling up until November, then spend it down. Your home down payment account strategy might be to build, build and build. Your emergency savings account strategy might be to grow it until you reach a specific dollar amount, then ignore until you have a real emergency. That annual expenses savings account strategy could be to fund, deplete and repeat.

OnPoint’s Bundle Rewards offers you a great opportunity to open multiple savings accounts for your various savings goals. Are you ready to start working toward multiple savings goals? We can help. Visit your local OnPoint branch and discover if you qualify for Bundle Rewards. It’s time to reach your savings goals.

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