Can You Hold Two Savings Accounts In The Same Bank?
Can I have two savings accounts in the same bank? This is one of the top searched queries on the internet. This could be your question to if you are thinking of opening an account online in addition to your current one. Worry not, as we have tried answering everything related to it in this blog post.
The answer is ‘Yes.’ You can have multiple savings accounts in the same bank. It is just that you will have different account numbers and credentials to access your funds and log in online. Having separate accounts has its own set of advantages and disadvantages that you can learn as you proceed ahead to read.
Pros Of Multiple Savings Accounts
- Work towards different financial goals: If you have a specific financial goal, let’s say you want to save for travelling to France, a separate account can help you achieve that goal by depositing funds regularly and avoiding spending.
- Less impulsive spending: You can schedule a transfer to the other account where you are saving for a particular goal on a specific day. This way, you’re forced to save the money and not spend it while it’s in your account.
- Receive better returns: Different savings accounts have different interest rates. One could pay more than others. So, you can get a chance to earn better returns by spreading your savings across various accounts.
Cons Of Multiple Savings Accounts
- Managing both can be challenging: Having multiple savings accounts requires more time and effort than managing one. This is because you need to regularly monitor your balances, fees, and transactions for each account, which can become overwhelming over time.
- Must maintain minimum balance: Banks require a minimum balance in each account. Failing this criterion, you might have to pay fees and charges, which could reduce your overall savings.
- Deduction of fees and charges: Whether it’s maintenance or transaction fees, you don’t have the option to skip these. This could result in a loss of earnings.
How To Manage Multiple Savings Accounts
Here are some tips to follow to help you manage your savings accounts in a better way:
1. Define Your Financial Goals Clearly
You must set separate financial goals for each account, such as emergency savings, investing, or monthly expenses. This will allow you to handle your bank accounts in an effective and organised manner.
2. Make A Note Of Account Information
You must keep complete records of all accounts, including account numbers, balances, and due dates, in one place. This will keep you on schedule and prevent any overdue.
3. Keep Track Of Account Activity
You must monitor your bank statements and transaction history frequently. This will help you identify anomalies or unauthorised activities early on.
How Many Savings Accounts Should You Have?
After learning about the pros and cons of multiple savings accounts, this is a valid question. Well, this depends on various factors, such as:
-Age
-Income
-Savings
-Expenses
For example, your monthly expenses are ₹30,000. As a general rule of thumb suggested by financial experts, you should aim to save between three to six months’ worth of expenses in an emergency fund.
Therefore, you would need approximately ₹90,000 to ₹1,80,000 in savings. If you prefer customising your emergency fund based on the number of family members, you might decide to save ₹50,000 per person. For a family of three, this would amount to ₹1,50,000.
The choice of how many savings accounts to maintain can vary based on personal preferences and financial goals. So, consider these factors before opening an account online.
Endnote
Banks offer many kinds of savings accounts. Each has a distinct set of features and advantages. As you set towards opening an account, check and compare different options. This is because you can also have two savings in different banks. For instance, you can have a zero balance savings account with Kotak811 and get up to 7% interest with ActivMoney, in addition to your existing regular or high-yielding savings account.
