Is It Wise To Open Multiple Savings Accounts At The Same Bank To Allocate Savings?
Everyone knows it’s in your best financial interest to have both a savings and a checking account. While checking accounts are useful for daily spending and expenses, savings accounts are great for saving for larger purchases and investments that you may need more time to save for. But what about multiple savings accounts? Is it wise to have multiple savings accounts, even at the same bank?
Though it might seem redundant, it’s actually very beneficial to have multiple savings accounts at one time. Multiple savings accounts come at no risk to you; in fact, it may help you save more money in the long run, and it has no effect on your credit score. Here are some of the best reasons to open multiple savings accounts, coming from a trusted and established savings bank:
- Interest. One of the best reasons to open a savings account is interest, meaning you can earn money just by having your money sit in the bank!
- Goals. Sometimes, people open different savings accounts to help them save for different goals. If you’re saving for a car, for a house, and for a wedding, you can open different accounts for each to help you keep track of how much you have saved for each goal. This can be helpful for many people, as it helps give them a clearer picture of how close they are to each goal, instead of seeing one large lump sum of money.
- Spending Habits. If you do have one savings account, seeing one large number can make it tempting for you to start spending unnecessarily. But having several accounts with lower balances may help you manage your spending habits. If you’re really trying to control your spending, you can set up weekly transfers from your checking account to your savings account, helping you save more money by making less money available for daily expenses.
- Insurance. The Federal Deposit Insurance Corporation (FDIC) offers up to $250,000 worth of insurance on savings accounts, meaning if anything happens to your money under that amount, you are insured.
Reach out to one of the Personal Bankers at McHenry Savings Bank (MSB) to discuss how we might help you save, invest or build wealth. Don’t have time to come in to a branch? You can open a savings account online while in the comfort of your home or office or anywhere! We work hard to ensure your money is safe, since we know that trust is earned, not given. Visit our website to learn more or give us a call at 815-385-3000.