Although the well-known saying is “less is more,” that isn’t necessarily true when deciding if you want to open additional checking or savings accounts. Having multiple accounts can be extremely beneficial for helping you manage and save your money. If you are exploring the idea of opening an additional account to meet your financial goals, we are here to help explain your options and help you reach your goals.
Multiple Checking Accounts
Opening multiple checking accounts is a great way to help you budget and manage your essential expenses. Consider opening one checking account specifically for bill paying. By dedicating this account to bills, you can avoid accessing it for daily spending and have a general idea of the amount of funds you need monthly to make sure your bills are paid on time and in full.
Financial tools like direct deposit and auto-bill pay are great options to use for this specific account and can help you conveniently manage your bills. When it comes to the rest of your expenses, having a second checking account will enable you to balance your additional finances and discretionary spending. Using your main account for gas, groceries, fun activities, and other expenses will help you keep those separate and keep a closer eye on your spending habits to ensure that you are prioritizing your budget.
As we discussed in our last post, you have different options when it comes to opening a checking account. It is important that you are strategic in choosing the right checking account based on your needs and it’s use.
Multiple Savings Accounts
One of the greatest ways to build wealth and protect yourself from debt is by creating a financial plan through saving. Though it is good to have a rainy-day fund, it is even better to have multiple savings accounts for targeted saving. When it comes to savings accounts, you have a variety of options based on your goals.
- This account is ideal for emergency funds and short-term goals. It usually requires a low minimum balance in exchange for lower interest rates. This type of account usually allows you to withdraw or transfer funds when you need access.
Certificate of Deposit (CD)
- A CD account is the right choice if you are trying to save for a more long-term goal. This account offers you a higher interest rate in exchange for limiting your access to your funds during the CD term. CDs allow you to lock in a rate and prevent you from dipping into your funds without penalty.
Money Market Account
- Similar to a traditional savings account, a Money Market Account allows you to easily access your savings. However, this account differs in that it requires you to have a high minimum balance in exchange for no monthly service fee and competitive rates based on money markets.
By opening multiple savings accounts that are best suited to your needs, you will be able to focus on depositing funds accordingly to accomplish your future goals and protect yourself with financial security.
Are you interested in opening an additional account with us? Get started by contacting us today!