Multiple savings accounts: Do you need them?

Some banks and credit unions have the option of changing the name of the accounts based on the savings goal. Here is why you should name them based on your goals.

multiple savings accounts
Savings accounts are helpful. But how much is too much? Here's the answer to the question: should you have more then one savings account?

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If you need more than one standard savings account, you must check your bank’s fees, rates and limits. Today, most online banks give higher savings rates and lower fees than traditional banks. It is, therefore, advisable to have multiple savings accounts in online banks. But how much is too much? Here is why you should or shouldn’t have multiple savings accounts.

Fees

Having multiple savings accounts would become a bad choice if you start to incur monthly maintenance fees on all the accounts. Many have a restriction on the number of savings accounts a person can have. These policies are different in each bank.

  • Some banks limit customers to six withdrawals each month per account. However, this does not include ATM or branch withdrawals.
  • No matter how many savings accounts you have, make sure to avoid fees for too many withdrawals. 
  • Regulation D rule used to limit savings accounts customers to six transactions a month per savings account, excluding ATM or withdrawals at a branch. This rule was revoked because of the covid-19 pandemic; however, some banks might still charge for numerous transactions. It’s advisable to read the bank’s policy before you open the account or make a transaction.

Personalize 

Some banks and credit unions have the option of changing the name of the accounts based on the savings goal. Though you can name the accounts with any random name, it is advisable to call them “emergency fund,” or “car fund,” or “housing fund.” This would not only save you time but would also be helpful if someone else has to access your account during an emergency.

These six financial institutions offer the highest annual percentage yields (APYs). Moreover, they don’t charge any monthly fees and you can also personalize your account by changing the account names.

Ally Bank

Account you should look for: Ally Online Savings Account

Features: They have customer service for 24 hours on all days. You get savings APY of 0.50%.

Discover Bank

Account to look for: Discover Online Savings

Features: No exorbitant fees on withdrawals. You get a savings APY of 0.40%

Barclays

Account you should look for: Barclays Online Savings Account

Features: You need not have a minimum balance. You get savings APY of 0.40%

Alliant Credit Union

Account you should look for: Alliant High-Rate Savings

Features: Their eligibility criteria make it easy for people to join. You also get a savings APY of 0.55%.

Capital One 360

Account you should look for: Capital One 360 Performance Savings Account

Features: Easy access to branches. You get a savings APY of 0.40%

Synchrony Bank

Account you should look for: Synchrony High-Yield Savings Account

Features:  You need not have a minimum balance. You get a savings APY of 0.50%

This page is purely informational. Line does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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