It must come across as no surprise that having a savings account is much better than keeping money on your own in your house. If this is the case, not only is your money safe, but also there isn’t any possibility for the money to grow in the near future. It is important for you to understand that it is not a mandate to always stick to a single savings account for keeping up with your saving regime. You can consider keeping your money in different accounts to enhance the ways in which you can organize finances and thereafter, cater to individual financial goals. Below are some reasons why it is a good decision to make multiple savings accounts.
Individual attention to each goal
In case your financial goal is not a consolidated one and you are saving for several causes at once, it will be best to save money allotted to each specific financial goal in an individual savings account. This will also enable you to manage better and set up better strategies, and thereafter work to maintain each account individually. Moving bulk amounts of money from your principal account goes a long way in achieving financial goals.
Make the process fluid
One of the other reasons to have multiple savings accounts is that you can make the process of transferring money from your principal account into the tertiary bank accounts according to your schemes, automatic, without you having to manually remember to do it every month. Such a system does not allow you to ignore the importance of maintaining the practice throughout the year or feel tempted to save it in one go.
Monitor as well as build progress
Having multiple savings accounts not only helps you in earning multiple savings account interest rate but also allows you the opportunity to monitor the progress you are making towards each goal. In addition to that, one may often notice that success further encourages you to keep working towards your financial goals. That is to say, when you notice that a particular account of yours is doing well, it serves as a positive reinforcement to keep continuing the behavior of saving and not unnecessarily spend. Multiple accounts, therefore, trains your mind to develop an extensive saving habit as opposed to the more common obsessive spending behavior which will enhance your finances by an unimaginable margin.
Ways to properly manage these accounts
It is one thing to open multiple savings accounts to reach your individual financial goals, and another, to properly maintain them without losing track of what is happening with each of them. It is necessary that you learn how to manage accounts online, so that you are not constantly compelled to pay visits to different banks personally. It is also important that you keep track of the competitive savings account interest rates which are prevailing within the market to be best informed about which bank can benefit you the most. You must also ensure that you do not open accounts with minimum amounts.
All said and done, it is time to start inculcating extensive saving habits if you haven’t already. Apply for multiple savings accounts without any further delay, and make the most out of your savings in times of need.