The Importance of Having More than 1 Savings Account

Aside from being a safe place to keep money, a savings account can be very useful for those who want to manage their finances and avoid overspending. However, with the rising cost of daily necessities and inflation, having just one savings account may not be enough. Why do we need to have more than one savings account? How many savings accounts should we have?

5 Reasons to Have More than 1 Account

Aside from the benefits above, you should know several other reasons before opening a new account. Check out the following points for more information.

1. Have more focused spending plan

Opening more than one savings account can help you categorize different types of spending. For example, you can separate recreational funds from daily expenses so that recreational funds remain on target. In addition, separating accounts according to your goals can also help you avoid consumptive habits.

Why is this important? Because some people are not very good at setting boundaries between their wants and needs. So, there are times when the money that should be used for a certain purpose is spent on unnecessary expenses. In fact, sometimes in serious cases, this behavior can lead to debt.

2. Make saving easier

Having more than 1 account is highly recommended for those who want to start saving. The reason is that you should not withdraw your savings unless you have reached certain targets.

For example, after receiving your salary, the thought of buying the things you’ve been dreaming of suddenly pops up, right? Having more than 1 account allows you to stay focused on your savings target so you will immediately allocate your salary to an account dedicated for saving, not spending.

3. Make business bookkeeping easier

Having more than one savings account is also highly recommended for those who work in the business sector. This is because business finances should be separated from personal finances.

If you separate your personal and business accounts, you will be able to see expenses and profits more easily and transparently. The financial report will also be more accurate.

4. Have more opportunities to get rewards

Banks usually offer special rewards for customers who open accounts. However, each type of account has different requirements. By having more than 1 savings account, your chances of getting rewards are certainly greater.

The rewards are not always in the form of money but can be in the form of discounts or cashback at certain partners, priority services, and others. Thus, rewards become an additional reason to open more than one account.

5. Able to withdraw more money

Each type of account or bank has a different daily withdrawal limit. For example, you have an urgent need so you have to withdraw IDR 50 million, but the withdrawal limit is IDR 30 million per day. By having more than 1 account, you can combine the 2 limits for that urgent need.

So, how many savings accounts should we have?

If you save all of your money in only one account, then you might not realize that you’ve exceeded your spending target. Therefore, having more than one savings account will help you manage your spending. However, each account comes with an administration fee. To handle this, you can choose the type of savings account that suits your daily withdrawal limit. Because, the bigger the limit, the bigger the administrative fee. Adjust the number of savings accounts you need to create with your expenses and needs.

It can be concluded that having more than 1 savings account is good for various needs, such as personal needs, savings, or even business needs. It would be wiser if you could apply these tips as soon as possible. Visit Jalin’s blog to learn more about other financial tips.