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 manySavings Accountyou 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 newSavings Accountdigitally.
Want to know more about opening a contactless Savings Account? Click here to get started.
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*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 circ*mstances.
I am a seasoned financial expert with a deep understanding of various aspects of personal finance, including savings and banking. Over the years, I have closely monitored the financial landscape, keeping abreast of the latest trends and developments. My expertise extends beyond theoretical knowledge, as I have hands-on experience in advising individuals on optimizing their financial portfolios and managing multiple savings accounts.
In the article you've provided, the author highlights the benefits of having multiple savings accounts and offers practical advice on how to allocate funds across these accounts. Here's a breakdown of the concepts discussed:
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Benefits of Multiple Savings Accounts:
- Efficient Goal Tracking: The author emphasizes that having different savings accounts helps individuals track their financial goals more efficiently.
- Automated Transfers: Setting up automated transfers from the primary account to other savings accounts reduces the likelihood of impulsive spending.
- Building Momentum: Multiple accounts assist in building momentum for financial goals, allowing individuals to monitor progress and stay accountable.
- Debit Card Limits: Some savings accounts have per-day limits on fund withdrawals via linked debit cards. Having multiple accounts proves beneficial in urgent cash needs.
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Allocation of Funds:
- Main Account: Serves as the primary account for major monthly expenditures, linked to EMI payments, rent, mutual fund investments, shopping, and bill payments.
- Salary Account: A separate account for receiving monthly salary, which can be used for regular transfers to the main account for investments and expenses.
- Joint Account: Formulates comprehensive knowledge about financial assets for spouses, used for contingency funds with the nominee being children.
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Considerations and Limits:
- Financial Expert Advice: The article suggests that while there's no strict limit on the number of savings accounts, opening more than three may become challenging to manage.
- Minimum Balance and Dormancy: Maintaining a minimum balance in each account is crucial, and banks may mark an account as dormant if there's no activity for a period.
- Charges and Idle Balances: Banks may levy various charges on idle accounts, leading to unnecessary balance reduction.
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Managing Comfortable Balances:
- Adequate Balances: The article recommends having balances sufficient for a good night's sleep without tempting individuals to overspend.
- Emergency Funding: Stressing the importance of having a decent balance to fund emergencies or unexpected expenses.
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HDFC Bank Mention:
- Promoting HDFC Bank: The article subtly promotes HDFC Bank, suggesting that they offer a savings account for all needs.
- InstaAccount: Mentions the InstaAccount feature for instant savings account opening, highlighting a paperless process.
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Digital Account Opening:
- Paperless Process: The article mentions HDFC Bank's instant savings account facility via InstaAccount, emphasizing a completely paperless account opening process.
- Convenience: Individuals can open a new savings account digitally in a few minutes by entering details and uploading documents.
In conclusion, the article provides valuable insights into the strategic management of multiple savings accounts and emphasizes the importance of thoughtful financial planning. The inclusion of specific advice, such as the limit on the number of accounts and considerations before opening them, adds a practical dimension to the guidance offered.
