We have talked a lot about the importance of having a savings account, the impact of this on our finances. But have you ever wondered if it is enough to have only one? We see if this can bring you benefits or, cause you a problem with your finances.
Where does it come from having different savings accounts?
At present banks offer many facilities with this type of services. It is normal to offer low cost or free savings accounts for what customers normally accept without thinking. If we are saving this, it can surely bring us many benefits or not.
Having too many accounts depends on what your financial goals are. Regardless of how many, it is necessary to analyze the pros and cons of having more than one savings account.
- The follow-up of your financial goals is clearer: How each savings account has a financial objective is much easier to accomplish without mixing money from other things.
- Your finances will be properly separated: This saves you from making big mistakes like spending the money you used to buy a car on vacation.
- Control over all deposits: It is almost impossible to deposit the same for each financial objective. While one account for vacations can deposit only 300, in another for Christmas you can address only 100. No confusion as each account is different.
- Many more payments are made. We refer to the savings accounts in which your financial institution charges you a certain amount.
- Interest rates are much lower. This issue only happens when you have savings accounts with very high amounts of money.
- It will have a lot to administer. If he’s not very good at administration, maybe he can look a little lost. It is not easy to know the time and amount of deposit, or in what account.
What is convenient?
This depends on how you handle finances better if you are a very organized person and just need your savings account and the emergency fund. When we are usually organized, we know from that account how much money goes to each thing.
On the other hand, if you need to have a separation for each objective, then it would be a better idea to have different accounts.
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If you have more than 10 goals you do not necessarily have to have too many accounts.
The necessary accounts
It would be more difficult if you had many accounts, so we’ll give you an idea of how to separate your resources.
- Emergency savings – Savings for long-term objectives
- Savings for medium-term objectives – Savings for short-term objectives
- Specific objectives – Savings for a couple
In the second part, we will tell you more about this type of accounts and how you can handle them in the best way.