Advantages And Disadvantages Of Multiple Savings Account

By Author: Shashank Bhaskar
Total Articles: 10
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Do multiple savings accounts really suit your requirements? Ever questioned what the advantages of having multiple savings accounts are? Well, it has its own pros and cons. The secret is doing your research, evaluating the positives and negatives and choosing appropriately. Multiple saving account might or might not help you. It depends on your requirements.
If you have multiple financial goals, having separate bank accounts is practical. It can assist you to focus individually on each of these goals and make it simpler for you to keep a track on the growth of each one. If you do not have at least one savings accounts, then here are some reasons for you to have one.
Short-term and long-term goals
A saving account is a fantastic way to save for your short-term and long-term goals. If you have just started working, the first thing you must take towards a stable financial future is opening one, either through net banking or mobile banking apps. Choose for separate salary and personal accounts if you desire to play down the confusion. It can educate you about how to save more since you will not have extra cash at your disposal all the time.
Interest rates
One of the best things that savings account offers is the interest you earn on the money deposited. Although the interest rates may be low compared to a recurring or fixed deposit, it’s still better than keeping cash at home.
Safety
Depositing all your money in a bank account is undoubtedly a safer and more secure option than hoarding it all at home.
Go online
Opening a saving account has other advantages as well. Besides depositing your money in a safe place and earning interest on it, you get to make use of facilities like online banking, phone banking etc. that can make your life simpler.
Advantages
Goals fulfilled
You could open individual savings accounts for each of your goals and save accordingly. This way, it gets easier to track them down and save for each one without upsetting the other.
Bank options
Multiple accounts in separate banks can safeguard you from risk. If one of the banks go down, you might be able to access to all your money. That’s when your savings accounts in other banks help you. In case of an emergency, it ensures that you have some money in a safe and sound place.
 
Numerous benefits
We mentioned the benefits of savings accounts before. So, the more accounts you have, the better advantages you get. If one bank’s ATM is not operating and you do not like using your debit card at another bank’s ATM, having an additional bank account can save you from all the extra fees.
Disadvantages
Minimum balance woes
Since you have multiple savings accounts in various banks, you also ought to maintain the minimum balance in each of these. You may end up paying lots of pointless charges if you are unable to maintain this minimum balance.
If you know that you cannot cope with different accounts, do not complicate it. You must try having one saving account in that case.
Chaos
Chaos is never good. Particularly when it entails money matters. You do not want to get caught with all those mental computations. If numbers confuse you after a point, it’s better to stick to one account.