Savings accounts are one of the best ways to keep your money safe.

However, you do not have to limit yourself to one savings account – you can save for specific purposes and organize your finances more efficiently by having multiple savings accounts.

A savings account can help you safely achieve your financial goal. But if you have several savings goals, it would be best to have several accounts, as this could benefit you in different ways.

Below are five reasons why you should open more than one savings account.

1. More accounts, more goals

Separating your finances into multiple savings accounts can help you better organize different types of goals. Monitoring of two or three different accounts to contemplate different objectives is much easier. For example, you could deposit in one of them thinking about debts and things for the home, and in the others for more ambitious purposes such as creating startups or small businesses. Additionally, one of them could be set to fulfill that dream vacation that you have always wanted.

2. Having multiple savings accounts helps you better deal with emergencies.

Separating money is a wise decision when taking care of certain types of emergencies. Be it medical expenses or sudden large amounts, with an account separate from the rest of the funds, it will be very simple. You can deposit whenever possible and not worry about “mixing funds.” If you lead a life as a couple, it is recommended that both of you have emergency accounts.

3. Get more bonuses

Banks sometimes provide bonuses for opening new savings accounts to attract new customers and differentiate themselves from competitors. The amount of these cash incentives varies depending on the specifics of the bank’s promotion. Some can give you $200 to $300 in cash which could get you closer to your savings goals.

4. Track your progress

Having different savings accounts for different purposes can help ensure that you are saving appropriately for your goals.

So you can monitor the balance and activity of each account more clearly. For example, if you want to save $5,000 for an emergency fund and you also want to save $3,000 for a vacation, separating this money into two accounts will make you better see your progress.

The best online savings accounts

There is a wide range of options if you want to open a new online savings account. Here are two of our favorites:

HSBC BANK: The HSBC Canadian Dollar High Rate Savings Account gives you a total interest rate of 1.75% on a New Deposit from September 13, 2021, to December 16, 2021. You can access your HSBC Savings Account through multiple channels.

NEO BANK: With the Neo savings account, you earn a 1.3% interest rate. You can make bill payments, send and receive e-Transfers, and make bank to bank transfers to and from an existing bank account – all with no monthly fees or minimum balances and unlimited free transactions.

In conclusion

Do not limit yourself to just one account. You can customize and track your financial goals more effectively when you have multiple savings accounts.