To make sure that you water your wealth to grow and keep debt at bay is to plan and save the maximum amount possible for future needs, dreams, and more. Talking about savings, the way you handle your savings is solely dependent on your financial personality. While some financial advisors suggest setting up a single current account linked to your checking account, a lot of experts also advocate opening several current accounts as that implies various savings targets.
Why should you open more than one account?
- Making the most of multiple offers -In today’s date, the industry runs on increased competition and to stay ahead, every bank offers lucrative offers. Opening different current accounts is a great option to review the products, services, or features to make the most of the best ones in the store. There are times when you want a bank with an ATM around you- be it your home or workplace. While online banks mostly have in store better interest rates, some furnish you with a bonus when you open an account. So, you sign up to take advantage of exciting offers housed by several institutions as you open more than one account.
- Enable yourself to avail regular withdrawal -According to money market rules, current accounts are limited to a particular number of withdrawals per month- currently six. That’s when multiple accounts play the trick, with more such current accounts, you get to withdraw money accordingly. However, if you don’t take care of the fact that the withdrawn money is used for further investments, you’ll just be ruining the potential of your accounts.
- Earning an increased amount of interest – Most of the banks pay interest on the amount you put in your current account. But a lion-share of them has set a maximum limit above which the rate of interest becomes stagnant. So, opening multiple current accounts is a wise option to put all your money to use.
- Securing your money – To keep a lump-sum secured there’s not a way quite as effective as to spread it across multiple current accounts as your money kept at different accounts gets protection separately.
- Organizing Money Needwise – By opening multiple current accounts, you already sign up for a better organization of your asset as it becomes easy to utilize it chunk-wise according to your needs.
If you wish to keep your earned funds separate for different needs, and dreams distinguished from one another, the whole idea of having more than one current account is ideal for you. However, do not forget to ensure that you are not looking down upon the array of benefits of consisting of a high balance with a single financial institution or losing a considerable amount in the name of fees eliminated because you hold more than one current account with the bank or credit union. Also, do compare the interest rates and fees to be levied on all current accounts before narrowing your final decision down to one.