3 Benefits of Having Multiple Savings Accounts
The best way to ensure that you build wealth and avoid debt is to diligently plan and save as much money as possible for both future needs and desires. You probably know that a savings account is an excellent place to keep money safe. But you don’t have to stick to one account—multiple savings accounts can enhance the way you organize your finances and save for specific goals. Following are some advantages to opening multiple savings accounts.
Monitor your savings progress
Individuals and families have many savings goals. While some of these may be short-term, many of them tend to be long-term, including:
- Planning a vacation
- Saving money toward a down payment on a home
- Paying for home repairs or renovations
- Shoring up an emergency fund
- Saving money toward college expenses
- Planning a wedding
- Funding a move
- Saving for retirement
- Buying furniture
- Setting aside money to start a business
- Saving money for biannual insurance premiums or property tax payments
By opening multiple savings accounts, you are able to categorize accounts and track exactly how much you have saved toward each individual savings goal. For example, if you want to save three months’ worth of income in an emergency account, set money aside for a down payment on a house, and fund your summer vacation, then you could open three accounts to see at a glance how close you are to reaching your goals.
If you check your account balances and see that you’re behind on a particular goal, you can brainstorm ways to get caught up.
With today’s online and mobile banking technology, you can easily automate transfers of an appropriate amount of money to each different account so you can make sure you’re on track to hit all your savings goals.
With multiple savings accounts, you can set up automatic monthly transfers from your primary account to each savings account. That way, you never forget to save for your goals. Plus, you get earmarked money out of sight quickly, so you’re not tempted to spend it. By having multiple accounts, you can automatically allocate the right sum to every type of savings.
Saving money can seem like a hardship — but it’s easier if you can envision all the great things you’ll do with the cash you’re setting aside. Having a designated account for each goal you’ve set for yourself will make it easier to stay motivated. After all, that $50 or $100 deposit just got you closer to that vacation, the house you want to buy, or the financial security your emergency fund will provide.
Refine your savings strategy
If you are organized and want to keep your funds for various needs and desires separate from each other, you should consider opening multiple savings accounts.
To learn more about how PlainsCapital Bank can you achieve your savings goals, call us at 866.303.0557 or visit your local bank branch today.