Advantages Of Having Multiple Savings accounts

Posted on Tuesday, August 29th, 2023 | By IndusInd Bank

In the realm of personal finance, the practice of having a single savings account is diminishing as people are opting for more dynamic approaches to fulfilling multiple goals simultaneously. A single savings account is easy to maintain but multiple accounts extend your horizon to enjoy numerous services and cater to all your goals at the same time.

Additionally, banks offer different variants of savings accounts aligning with various needs, such as zero balance savings accounts, digital savings accounts, and sweep-in accounts.

While having multiple savings accounts may seem unconventional, there are advantages to managing various accounts tailored to different financial goals. In this blog, we will delve into the benefits of opening multiple savings accounts to help you understand why it could be crucial for your financial stability and goals.

Key benefits of opening multiple savings accounts

A savings account not only offers interest on your deposits but also comes with a range of services, such as –

• allows fund transfers
• helps pay utility bills
• aids in credit card bill payments

It helps you manage your daily finances and save for the future. With multiple savings accounts, you can stabilise your finances.

Here are the key benefits of opening multiple savings accounts –

1. Efficient Goal Tracking

The primary advantage of having multiple savings accounts is that you can track and manage your financial goals more efficiently. When you have just one general savings account, it can be challenging to keep tabs on the specific purposes for which you are saving.

With multiple accounts, however, you can allocate funds to distinct goals. Whether it is saving for a dream vacation, a down payment on a house, or an emergency fund, each account can be designated for a specific purpose.

2. Enhanced budgeting

Having separate savings accounts for different goals naturally lends itself to more effective budgeting. It is easier to allocate funds for each goal when the money is physically separated. This can prevent overspending in one area and ensure that you are consistently making progress towards all your financial objectives.

For instance, setting up a separate savings account for monthly expenses and shopping will keep your other savings accounts intact and prevent you from dipping into your goal-based funds.

One of the best savings accounts for monthly expenses is the IndusInd Bank Indus Delite Savings Account. It provides exciting offers on your Delite Debit Card, including 5% cashback on fuel, entertainment, dining, and OTT expenses.

Additionally, you get a 5% discount on Amazon, 20% off on online food orders, and a lot more.

It can be opened within minutes online through video KYC.

3. Easy Monitoring of Progress

Imagine a scenario where you have just one savings account with a mix of funds for various purposes. Monitoring the progress of each goal can be confusing and time-consuming. However, with multiple savings accounts, you can easily track the progress of each goal at a glance. This transparency in tracking can help you stay on course and make adjustments as necessary.

4. Flexibility in Account Types

Banks offer specialised savings accounts tailored to different goals.

For instance, you might find a high-yield account such as the IndusInd Bank Indus Multiplier Max Savings Accounts specifically suitable for long-term savings.

• This account offers the flexibility of a savings account while providing fixed deposit interest rates.
• The smart sweep-in feature of this account automatically converts your excess funds above ₹20,000 into an FD for a better yield.
• You also get a 25% discount on the locker facility for the first year at IndusInd Bank to keep your valuables safe.

By utilising multiple accounts, you can take advantage of the different account types to optimise your savings strategy.

How to manage multiple savings accounts efficiently

Managing multiple savings accounts effectively requires organisation and a clear strategy. Here’s how you can do it:

• Set clear goals: Assign each account a specific purpose, whether it is an emergency fund, vacation, home purchase or other goal-based savings.
• Automate transfers: Schedule automatic transfers from your main / salary account to individual savings accounts to ensure consistent contributions.
• Name your accounts: Give each account a distinct name to remind you of its purpose and help you stay focused. You can use IndusInd Bank’s MAMN (My Account My Number) facility to assign distinct account numbers to each of your accounts and allot savings to each of your goals separately.
• Use technology: Utilise banking apps or NetBanking to track balances, set savings goals, and monitor progress effortlessly.
• Regular review: Periodically evaluate your savings goals and adjust contributions as circumstances change.
• Avoid overcomplicating: While multiple accounts are useful, do not create so many accounts that it becomes overwhelming to manage.
• Emergency fund priority: Keep your emergency fund easily accessible and in a separate account to ensure it is readily available in times of need.
• Stay disciplined: Resist the temptation to use savings for unintended purposes by adhering to the designated goals for each account.
• Consolidate if necessary: If you find it hard to manage multiple accounts, consider consolidating while still maintaining distinct goals within one account.
• Educate yourself: Stay informed about the different account types and their benefits to make the most of each savings opportunity.

Conclusion

There are numerous pros and cons of having multiple savings accounts. However, by leveraging the flexibility of various account types and keeping your fund secure, you will be better equipped to navigate unexpected financial challenges while staying on track to achieve your long-term goals.

IndusInd Bank offers safe, robust and versatile savings accounts that suit your requirements comprehensively. You can enjoy an array of banking services while meeting your financial goals without hassles. Open an IndusInd Bank Savings Account now!

Disclaimer: 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. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.