Savings Accounts: Deciding How Many Accounts You Need

How Many Savings Accounts Should I Have

This video breaks down how many savings accounts you should have, the types of accounts available, and the pros and cons of managing multiple accounts so you can align your savings strategy with your financial goals.
Video Transcript
How Many Savings Accounts Should I Have? Most financial professionals recommend a minimum of two savings accounts, but the number you have should correspond with your financial goals. The Different Types of Savings Accounts Are:
  1. Traditional Savings Accounts
  2. Money Market Accounts
  3. High-Yield Savings Accounts
  4. Certificates of Deposit (CD)
Deciding How Many  Accounts You Need Consider the following:
  • The goals of each account and how much you plan to deposit monthly.
  • How saving the amount you want will affect your monthly expenses.
  • How your habits will affect your savings habits.
  • Personal preferences for managing multiple accounts
Benefits and Drawbacks of Having Multiple Savings Accounts Pros:
  • Easier to track savings goals
  • Greater money management flexibility
  • Emergency funds can be kept separate from other savings
Cons:
  • Multiple statements to review 
  • Managing multiple accounts can be distracting
  • May lose out on higher interest rates
PRO TIP: Having a strategy to use your accounts effectively, efficiently and economically can set you up for success. Know how you plan to manage the accounts before you open them.