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How Many Savings Accounts Should I Have? – Forbes

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Savings accounts can offer a safe place to keep …….

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.

Savings accounts can offer a safe place to keep your money until you’re ready to spend it. Having multiple savings accounts could make sense if you want to set aside money for different goals. There are some advantages to opening more than one savings account when you have competing financial goals, as opposed to lumping all of your savings together in a single account.

If you’re wondering whether it’s something you should consider, here’s what you need to know.

1

Quontic Bank Money Market Account

Annual Percentage Yield

0.40% to 0.60%

Minimum Deposit Requirement

$100

Monthly Maintenance Fee

$0

1

Quontic Bank Money Market Account

How Many Savings Accounts Should I Have?

The short answer to this question is as many as you need. But the actual answer depends on how many different savings goals you’re working toward.

For example, your list of savings goals might include:

  • Planning a vacation
  • Saving money toward a down payment on a home
  • Paying for home repairs or renovations if you already own a home
  • Shoring up your emergency fund
  • Saving money toward college expenses for your kids
  • Planning a wedding
  • Funding a move
  • Saving for retirement
  • Buying furniture
  • Setting aside money to start a business
  • Saving money for various sinking funds, such as biannual insurance premiums or property tax payments

Each of these goals is very different. For example, you might need to save tens of thousands of dollars for a down payment on a home. But your savings goal for paying annual insurance premiums may be less than $1,000.

Setting up multiple savings accounts for each goal could make it easier to track your progress. And, when you need to tap into those funds, you can do so without worrying that you’re taking money away from another goal.

Is It a Good Idea to Have Multiple Savings Accounts?

Having multiple savings accounts could be a smart move if you have very targeted financial goals. It makes it easier to keep those goals separate and prioritize how much and how often you save toward them.

For example, say you have …….

Source: https://www.forbes.com/advisor/banking/savings/how-many-savings-accounts-should-i-have/

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