Is it wise to have multiple savings accounts? Know how to get the most benefit

New Delhi. Often people keep all their savings in one account – be it an emergency fund, a dream of buying a house or a holiday budget. This makes it difficult to find out which money is used for which purpose. At the same time, if a separate account is created for each goal, then it becomes easier to keep track of the money. For example, keeping one account only for emergencies and another for travel funds keeps the budget clear and also increases control over spending.

Benefits of different accounts
The biggest advantage of having multiple savings accounts is that the progress towards each goal is clearly visible. This can avoid accidentally spending the emergency fund or withdrawing money for home loan down payment. Apart from this, some private and digital banks also offer attractive interest rates. In such a situation, if you open accounts in different banks, you can get more interest and better returns. Just keep in mind that the bank should be registered with RBI and the deposit amount should have insurance cover up to Rs 5 lakh.

For whom is this method beneficial?
If you have multiple financial goals—like buying a home, traveling, or building a retirement fund—then this method is perfect for you. This brings financial discipline and strengthens the grip on the budget. At the same time, for those who have limited income or who feel uncomfortable in managing multiple accounts, it will be easier for them to keep only one account. Start with two accounts – one for emergencies and the other for short-term goals.

Savings will increase with proper management
If you gradually set aside a little money for each goal, you can build up a large fund without any pressure. Now most banks provide the facility of digital dashboard, through which all the accounts can be monitored at one place. With proper planning, this method not only increases savings, but can also prove to be a big step towards financial stability.