There are many ways to ensure the security of your wealth and savings, as well as to avoid debt. One of those methods to help you in properly managing your hard-earned cash is to create multiple savings accounts. Some financial experts would even agree that having multiple bank accounts will aid you greatly in securing your retirement plans.
Albeit there are different reasons why you should have more than one bank account, let’s take a look at some of the top motives for this cause.
Different Savings Goals
Many individuals would like to save cash for different reasons, such as to buy a house, secure their retirement, to have an emergency fund, or even to buy that special engagement ring for when they propose to their significant other. No matter what the reason may be, having a savings account for each goal will help each individual savings goal. You can still do it with just one savings account, but there are times when cash flow becomes so convoluted that it can become tough to manage everything at once. It’s best to list down all of your savings goals and then open a bank account for each one. Just remember not to go overboard with it.
Concerned for the Life of Banks
Banks are known to be secure financial institutions with a minimum chance of failing. However, there’s still that sliver of a chance that the bank can go under. In the case that it does happen, it can put you at ease knowing that you’re still going to have some (or most) of your hard-earned cash in other bank accounts. Even though banks do have certain statements or agreements to their customers that they’ll reimburse the cash that was lost because of the firm’s inability to keep itself afloat, sometimes they won’t give you back everything you’ve been putting into the financial institution. If you have multiple savings accounts, you’re still going to have some cash left behind should the bank go down, at the very least.
Receive Perks and Promotions
Different accounts mean varying perks, especially when your savings are found in different banking and financial institutions. Some banks like to give promotions and special offerings to their loyal customers, and there are times when these promos pop up at the same time. Take advantage of these many endorsements if you have different bank accounts.
Withdraw Cash Without Any Additional Charges
ATMs from different banks will let you withdraw cash from another bank, but with a fee. However, if you can have a savings account at different banks, you don’t have to worry about these extra charges because you’re just going to withdraw from your account from that particular financial institution.
Even though there are different advantages to having multiple bank accounts, there are some individuals who are still skeptical about the idea. For example, you might think that managing all bank accounts can be confusing. If you think that way, then all you need to do is to create a system that’ll allow you to check the progress and status of each bank account you own. You can even apply for new bank account here. Just remember to compare interest rates and fees before you decide to blatantly apply for a new savings account to any random bank that catches your interest.