Why Opening Multiple Savings Account is Useful?
As you already know, a Savings Account is a great way to safely store your money and spend it whenever needed. But you don’t have to limit to one account as multiple Savings Accounts can enrich the way you manage your finances.
Here’s why you should open more than one Savings Account:
- Setting up different accounts helps you keep track of your goals efficiently
- Automated transfer of money from your primary account to other Saving Accounts reduces the chance of spending it impulsively
- It helps you build momentum for your financial goals, monitor progress and hold yourself accountable while saving for the future
- Debit Cards linked to some Savings Accounts have a per-day limit on fund withdrawal. So, having multiple accounts comes in handy when in urgent need of cash.
Here’s how you can allocate your money across different Savings Accounts:
Main account: You should have one main account which will act as your primary account for major monthly expenditure. This account can be linked to all your EMI payments, rent, mutual fund investments, monthly shopping and other automated bill payments.
Salary account: You should have a separate account to receive your monthly salary. This can also be a temporary account which you can consider closing when you change your job. You can regularly transfer a certain amount from this account to your main account to meet investments and expenses.
Joint account: Having a joint account between spouses formulates comprehensive knowledge about financial assets. You can use this account as an avenue for 3-6 months’ worth of contingency funds. The nominee of such an account can be your children.
While there’s no limit to how many Savings Accounts you can have, there are a few things to consider before signing up for more than one. According to financial experts, it isn’t advisable to open more than three Savings Accounts, as it can be difficult to manage. Apart from having a minimum balance in each account, banks might also mark an account dormant if there is no activity for a period of time. Additionally, banks levy various charges on these accounts, and if you’re keeping them idle, the balance will decrease unnecessarily.
The money in each account depends on your comfort level. While it should be sufficient enough to have a good night sleep, it shouldn’t tempt you to splurge. It isn’t uncommon for bank balances to stagger just before your salary arrives, making it essential to have a decent balance to fund an emergency or unexpected expense.
The good thing about having many accounts in that you can prioritise your goals and save sincerely. At HDFC Bank, there is a Savings Account for all your needs.
While there’s no limit to how many Savings Account you can have, there are a few things to consider before signing up for more than one.
To keep up with the current times, HDFC Bank has extended an instant Savings Account facility via InstaAccount, ensuring a completely paperless account opening process. All you need is a few minutes to enter your details and upload your documents. Click here to open a new Savings Account digitally.
Want to know more about opening a contactless Savings Account? Click here to get started.
Click here to open a Savings Account.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.