How many savings accounts should I have? Multiple savings accounts can help you reach financial goals, manage finances, and build up savings. Fifth Third Momentum® Banking offers support for your financial goals—providing local bankers, goal-based savings options, and virtual customer service for multiple checking or savings accounts.
Just because you can open more than one savings account, should you? The answer is yes, probably. Depending on your savings goals, you may want to have more than one savings account.
Why Would You Want Multiple Savings Accounts?
There are a few reasons why you might want to open more than one savings account, from savings goals to your budget and spending needs:
- Multiple savings goals: Depending on your objectives, you might be trying to save for several different categories, from buying a house to college.
- You’re gunning for different perks: Some savings accounts come with sign-in bonuses or a higher interest rate, and you may want to keep some funds in different accounts to take advantage of what each is offering.
- You want to keep savings separate: It can be harder to keep from spending your savings if they’re linked to your checking account. Keeping them in a separate account can make it more difficult to access the money—and easier to maintain your savings level.
- You can track your progress: If you're working toward a few different things, it's helpful to be able to eyeball how far you've got to go.
Decide What Goals You're Savings Towards
Many people have more than one savings objective, and focusing on different savings buckets can help you work successfully toward achieving them. Here are some examples of things people might be saving for:
- Emergencies: Experts recommend having at least three to six months of living expenses in interest-earning savings account for unexpected financial surprises.
- Buying a home: You should generally aim to put down 10% to 20% of the purchase price of any home you’re considering. If you were buying the average U.S. home costing $295,000, you’d be looking to save at least $29,500 in this account.
- College: This is a biggie, with the price tag for four years of college hitting six figures for many schools. You’ll probably want to do some of this saving in a 529 account, but a savings account can round out your money total for this goal.
- Wedding: Is there a marriage in your future—either yours or a child’s? The average wedding now costs more than $33,000, according to The Knot, so it’s smart to earmark money for this expense ahead of time.
- Vacation: That dream vacation (Safari? All-inclusive?) can cost $5,000 to $10,000, depending on what’s involved. Don’t put it on a credit card—save for it in advance.
- Car: Have you always wanted a Tesla? The Long Range model starts around $48,000. The more you can put toward the purchase price, the less you'll have to borrow.
- General savings: Don’t forget that you might want a separate account for your everyday savings, so they don’t mix with your spending money. Keeping savings separate from your checking account makes them harder to spend.
Should You Have Accounts at Multiple Banks?
In general, it will be simpler to keep multiple savings accounts at one bank, if you can. That will make the transfer of funds easier between accounts, and you may get discounts or bundled fees for having more than one account at your bank.