A savings account is a fantastic place to save and grow money. It is probably one of the best and the simplestways to build wealth and cater to future financial needs. So, in today’s digital world, one can easily consider opening several savings account online and reap the benefits. These are risk-free options, and one gets more liquid cash in the event of an emergency.
In fact, several accounts with the same bankmight help you meet the savings milestones quickly. You will be able to buy a new car, go on a world trip or fund your new business sooner than you expected. Therefore, if you wish to open a second or third account in the near future, have a look at what it can do for your financial health.
1. Reduces the Likelihood of Misspending
When you apply for a bank account online, the temptation to spend is automatically curbed. This is because your funds are spread across multiple pots. This way the balance might not be too high to spend aimlessly. Therefore, your desire to withdraw money is limited and subsequently lets the money grow consistently. Boundaries help to progress in your goal efficiently.
2. Sense of Security
Stashing money in different accounts is a secure and smartway to manage funds. In the event of fraud, only a minimal amount is likely to get stolen. Further, putting your money in the best savings account is way safer than parking the same at home. You can quickly access your money at any time during contingencies without formalities. Therefore, it makes absolute sense to invest in multiple savings accounts and spread your risks.
3. Maximize Interest Rates
Having more than one account equals more interest on your deposited funds. This speeds up the wealth accumulation process. Subsequently, you are able to tick off your goals within a shorter horizon. The best savings account offers interest quarterly, which is an attractive way to build your fund for the future or for emergencies.
4. Individual Savings Goals
It helps to track the progress of different financial targets. One account could be set aside for medical purposes, another for education and the third and fourth can be dedicated for travel or debt clearance respectively. This makes it easy to clear one particular goal without having to interfere with the progress of the other. Make sure to keep track to know all the buckets are growing consistently without lagging behind one another.
5. Receives Multiple Perks
The number of perks doubles when you have more than one savings account. This means you can receive the same benefits over and over again. For example, higher interest rates since the best bank will offer only 3% with one account while higher (up to 6%) for multiple ones. Further, account holders can also get signature debit cards, cash back offer on activation, unlimited ATM transaction and higher POS limits.
One good way to manage several accounts is to maintain a spreadsheet. Further, you can automate the transfer from your checking account to avoid forgetfulness or manual hassle.