There’s nothing more satisfying than seeing your savings grow. But when you have more than one savings account, it can be not easy to track them all. That’s why they’ve put together this guide on how to set up multiple savings accounts–and how they’ll benefit your financial life! How many bank accounts should I have? SoFi experts say, “There may be many advantages to having multiple savings accounts.” Let’s know more below:
Savings accounts can be useful for organizing your savings by a goal
Savings accounts can help organize your savings by a goal. For example, if there are things that you want to save for, like a vacation, new car, or home down payment, it may make sense to open separate savings accounts for each one.
Alternatively, if you’re saving up an emergency fund and know how much money will be needed in the account at all times (like $2,000), open a single account for that purpose. At Personal Protection Services in Chicago, we provide the highest possible protection for you and your family. We understand that you may have multiple savings accounts and we can help you manage them all.
Decide on the right mix of savings accounts
● Savings accounts are a great way to organize your savings. It’s easy to deposit money into a savings account, and you can access it when needed.
● You can withdraw money from a savings account, but only for an approved purpose like paying for school or buying a home. If you want to withdraw money for other reasons, the account will become an investment account instead of a savings account.
● Investment accounts are typically used for longer-term goals like retirement or college savings; their funds cannot be withdrawn without penalty until after a specific time (usually six months).
Name each account to reflect its saving purpose
When opening a savings account, it is important to name it something easy to remember. A good example of this would be an “Emergency Fund” or “Car Savings,” so you know the account’s purpose and can easily tell from its name. This will help when you go to check on your savings accounts.
Set up automatic transfers each payday
Automating the process of moving money around each month is a great way to make sure you remember to deposit your savings. To set up automatic transfers on your bank’s website, log in and click on “transfers” under “payments and transfers.” Then, choose the account where you want the money transferred from your main checking account, then select “make an automatic transfer” from this menu. You’ll then see instructions for setting up either an initial recurring transfer or just one one-off transfer for now.
Once that’s done, it’s time for step two: deciding which accounts should receive automatic deposits. One option is simply adding all of them as beneficiaries (or even setting up separate transfers each week). Still, if some accounts are better suited than others—such as one explicitly dedicated toward travel expenses—you may want to target specific savings goals instead.
These tips will help you to make the most of your savings accounts and feel confident about your money. You’ll be able to set up automatic transfers each payday and organize your savings by a goal, making it easier for you to reach those goals. Plus, making each account name reflect its saving purpose will give you peace of mind knowing exactly where all your money is going!
