In this article, we’re going to cover how many savings accounts you can have.
On paper, it seems like a good idea to have multiple accounts, especially with higher rates. However, chasing the next highest savings rate is usually a waste of time.
Multiple savings accounts
There is no limit to how many savings accounts you can open. Usually, banks allow you to open as many savings accounts as you want.
I can’t think of a reason why you would need more than one savings account.
Do me a favor. If your bank account offers one interest rate and another bank starts offering a slightly higher interest rate, don’t switch accounts. Half the time, those rates are just introductory teaser rates that will drop after six months.
I’d rather take a slightly lower interest rate if it’s at a bank I can trust to serve me well in the long run.
But there are many PhDs who spend every waking hour online finding the best rate and jumping right into it.
“OH MY GOD!!!!” they say. “Ally Bank” increased its interest rate from 2.25 percent to 2.75 percent. It is now 0.02 percent higher than Capital One 360. I’m going to switch accounts right now!!!’ If you do, you’re an idiot.
Do you really want to spend every month trying to find out which bank offers a slightly better interest rate? That’s a huge waste of time for most of us, as a 0.5 percent difference equates to just a few dollars in added interest per month.
Also, interest rates change over time, so chasing interest rates doesn’t even make sense. I plan to stay with my bank for the next few decades and I’m sure you have better things to do with your time. So focus on the Big Wins, not the rate jump.
The Best Savings Accounts (Including the Ones I Use)
aWe’ve seen a lot goes into finding the right accounts. Here are some options I’ve found work well for many, along with my personal picks.
The best savings accounts
I wouldn’t encourage anyone to use a standard Big Bank savings account. Online savings accounts allow you to earn more interest with less hassle. And since you’ll mostly be sending money there, not withdrawing, what does it matter if it takes three days to get your money?
Capital One 360 Savings (capitalone.com/bank). This is the savings account I use. It allows you to create virtual sub-savings accounts in which you can specify savings goals such as an emergency fund, a wedding or a down payment on a house. You can also set up automatic transfers to other accounts (“On the 1st of every month, transfer $100 from my checking account to my savings
account and send $20 to my investment account on the 5th of every month”). There are no fees, no minimums, and no complicated sales or annoying promotions. It’s not always the highest rate, but it’s close. Capital One 360 Savings is just a simple savings account that works.
Allied Online Savings Account (ally.com/bank). Also recommended. This no-fee savings account also allows you to create multiple savings accounts to help with your automation system. It has solid interest rates and works great.
Other savings accounts to consider: Marcus by Goldman Sachs and American Express Personal Savings.
Now you have all the information you need to open a new checking or savings account. Each account should take no more than three hours of research and two hours to open and fund.
If you need to transfer money from an old account to a new account, your new bank will help you arrange the transfer. I recommend keeping your old account open with a small amount if you have automatic transfers still trying to withdraw from your old account. Set a 60-day calendar reminder to close the old account. And we go to our next step.
I didn’t know how put money on me goals. I had one savings account and: shall continuously redistribute my money My thought. After reading the book, I opened different accounts to: deposit money to things i wanted spend money — no just emergency savings and retirement but travel and give others.
— EMILY CRAWFORD, 33
Frequently asked questions about multiple savings accounts
Is it a good idea to have multiple savings accounts?
Many consumers typically only need one savings account. However, having multiple accounts, at the same bank or at different banks, can be useful for managing different savings goals. Since there is little or no downside to opening multiple savings accounts (it doesn’t affect your credit), it can be a good idea.
Is there a downside to opening multiple savings accounts?
You may pay more fees. Some banks require a savings account minimum, and a fee is charged if you don’t meet that minimum. The more you split your money, the more likely you are to pay those fees.
Can I have two savings accounts at the same bank?
It depends on your banks, but generally no. You can usually only have 1 active savings account (unless your bank says otherwise).
How many different savings accounts should I have?
Have at least one checking and one savings account. Use your savings for an emergency fund and goals, then use your checking account for expenses and expenses.
Is it OK to have 3 savings accounts?
It’s generally not a good idea to have more than 3 savings accounts because they can manage more than you have in time. Also, if you don’t use the account, your banks may mark your account as dormant if there is no activity.