Part 2 Pros and cons of having different savings accounts

Part 2: Pros and cons of having different savings accounts

We already talked about the types of savings accounts, now we will delve into them and how we can manage them.

Different savings accounts

We had suggested making a division of your accounts in such a way that you will not end up with one for each goal. Otherwise, you could have up to 15, depending on your financial objectives. Among those divisions were the following.

Emergency savings

This type of saving is absolutely necessary because there will always be things that are beyond our control. For these incidents, we must be economically prepared. You should always be in an account separate from your other savings.

Savings for long-term goals

Any goal that takes more than a year or two to achieve, such as buying a car or house.

Savings for medium-term objectives

These savings are for objectives that can be met in a couple of months, some new furniture you want to acquire. Holidays in the summer, etc.

Check This Out: The Pros and Cons of Having Different Savings Accounts

Specific objectives

Regardless of whether they are the short or long term, these types of objectives are different and therefore deserve another account. Some examples of them are Savings for birthday gifts, savings for Christmas dinner or a particular trip.

Savings in couple

For savings as a couple, it is recommended to have an account in a savings cooperative, since these provide greater benefits.

The management of multiple savings accounts

It seems difficult to have control over more than two savings accounts, but that is not the case. That is why we want to help you so that your accounts can be handled in the best way. Of course, the management of these accounts depends on the final number you have chosen to organize.Part 2 Pros and cons of having different savings accounts

The same bank

The best way to be aware of all your savings accounts is to have all of them in the same bank. This will make life easier for you in many aspects, for example in case you want to transfer money from one account to another. When our savings accounts are in different banks they take many more days or it can be more complicated.

If you have online banking, you can check them all at the same time. But on the other hand, just as it is easy to spend money on your savings accounts, it will be easier to get it out. Making “loans” among your savings accounts is a mistake you should avoid.

If you are one of the people who constantly take money from your savings it is better to consider it in another bank. Having savings accounts in different banks allows you to take advantage of interest rates.

Make a good budget

Independently if your savings accounts are in the same bank or not, you can help with applications or software. These keep under control those savings accounts, and even in general in all your personal finances.

Review your strategies periodically

Having multiple savings accounts do not have to be something for life, the time may come when you should reduce them. That is why you should check frequently if your financial savings strategy is working. It is said that it should be reviewed annually but if it does it every 6 months it can prevent errors that will accumulate until the end of the year.

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