Are you looking for some diligent financial planning?
If yes, then this is your stop. Building wealth is not a piece of cake but with smart investment and avoiding debts you can save a good sum of money for both current and future use. While some financial gurus recommend having a single savings accounts, others are adamant with the idea of have multiple accounts.
No matter what option you choose. The first (tried &tested) way to shoot up your savings is through diligent financial planning. Whether you plan to have single or multiple savings account will all depend on your financial stability and preferences.
As experts recommend: You should not put all your eggs in one basket, therefore considering multiple savings accounts can be lucrative for the following reasons:
Multiple saving goals
As humans, we have many goals and objectives to achieve. This is one main reason why need multiple savings accounts. It helps to spread out our savings towards separate goals instead of having all in one. For example, you might want to save towards unexpected events/emergencies, college tuitions and wedding—then a smart way to achieve the desired savings would be to own them separately.
This also helps you to evaluate how close or far you are from achieving your goals.
One bank might fail
Where one bank fails, other prospers. In most cases, government insures/reimburses depositors if they have more than X amount of money. So, you need to ensure you do not exceed the amount by moving it into other bank’s savings account.
Likewise, if one bank fails, the authorities may take some time to provide you back with cash. If you have savings in other financial institutions then you can use cash easily and quickly for the time being.
Perks and privileges
With multiple savings accounts, you are able to enjoy multiple perks and privileges. One bank might be walking distance from your house, while other bank offers attractive interest rates. Likewise, some banks may offer bonus, cash backs and other prizes on your savings accounts.
Generally, money markets and banks only allow 6 withdrawals a month. However—not when you have three different savings accounts! This leaves you with 18 withdrawals in one month!
It is essential you withdraw money only to make use for the specific goal or further investments.
Another reason to have multiple savings accounts is to enjoy the different kind and level of services provided. One bank might be efficient with customer care handling, while the other one is always son time in their services.
Ultimately, having multiple savings accounts solely depends on your ability to handle them. From interest rates, fees and other hidden charges, all should be weighed together to determine where it is worth investing in. Diversifying your financial institutions for savings accounts is good, but if you think you will lose track of your money, then this is certainly not for you.