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Wondering! How Many Savings Accounts Should I have?

Wondering! How Many Savings Accounts Should I have?

Seriously, sometimes do you wonder how many savings accounts should you have?

I was also having this question for so long but after taking to expert financial planners and chartered accountants I started keeping three savings account in different banks.

Now, I have named these account as per my goal of opening that saving account and after naming them it becomes easier to identify the benefits of each account.

Various saving accounts opened and named by me are-

1. Basic Account-This is the account in which I receive the credit of my income sources and also I use this account for the transaction of my bills.

I pay rent, EMI of my car and my monthly expenses through this account. Sometimes I also purchase my favourite product or my favourite attire with this account.

2. Piggybank Account-This account I have opened just for the purpose of saving for an emergency, and I aim to tap into it only at the time of a do or die crisis.

I transfer approximately 20% of my saving account income into my piggyback account.

This account I also use for some unwarranted expense such as unexpected medical bills or any other emergency bill payment which can’t be avoided at the moment.

3. Investment Account-This account I have opened to keep my investment portfolio organized and up to date.

For the time being, I am putting 15% of my earning into this account, which I have aimed to increase in the years to come.

I invest into Mutual funds and some stocks through this investment saving account.

I also Invest some portion of it into a side hustle I am building. Let’s See where it goes! Haha!

So basically maintaining these accounts is having its own pros and cons and I would discuss quickly these advantages and disadvantages.

First I would go for the advantages-


Some amount of your capital is protected or insured and that applies separately for every bank.

So, If any bank closes or loses its license it poses a minimal risk to me.

Clarity of Purpose

As I have multiple savings goal it becomes clear why every bank account of mine exist and I use it for the purpose intended without thinking very hard.

ATM Withdrawals

Some banks have a maximum limit for the for the number of ATM withdrawals, So if I exhaust the limit I choose to withdraw from another bank ATM. Also If you need to transact regularly some banks have a limit for maximum transaction also.


Every bank has its own advantages and facilities, So I use the best of the facilities provided by them and also I have the option of approaching several banks if I want a loan to fund for any emergencies.

I get the option to choose the best banking products offered by different banks.

Now I would quickly discuss some difficulties posed by me in keeping several bank accounts.

High Monthly Average Balance

Almost, all banks pose a minimum balance requirement and If not maintained they pose a heavy fine.

So sometimes It can be hard to maintain that.

Lose Some Savings Interest Accumulation

Some banks provide a higher rate of savings interest rate if I keep a balance of more than a specified amount.

So keeping the money in various accounts lose some of my interest income.

Tax Filing

Tax filings become somewhat difficult as I have to give the statements of all my bank accounts to my tax filing advisor.

Multiple Accounts and Dormant Account

Although I don’t have this problem now, one of my friends was having 7 accounts with different banks and he forgot about one account, the account became dormant after transactions were not done for a long time and it became somewhat difficult to activate that account.

Also, Dormant and inactive accounts are susceptible to frauds.

I have penned about keeping multiple accounts, Its advantages, and disadvantages briefly in this outline.

What do you like and dislike about keeping multiple accounts?

How many accounts are you having?

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