Many people have grown up faithful to one bank. Your parents may have grown up using just one bank for checking, savings, car loans, and even mortgages. Opening multiple accounts throughout the years at the same bank was not uncommon. Nowadays, with so many more banking options available, it’s much easier to place your money in accounts that will bring you higher yields and benefits than if you maintained your money all in one place. The ability to operate online banking opens the door to easier banking with a greater ability to compare requirements and shop around for bonuses being offered. There is an abundance of ways you can use modern technology and the buffet of banking options available today to help you reach your monetary goals.
1. Identify
Begin by identifying why you need multiple savings accounts. Do you have particular savings goals you wish to reach such as a special vacation or purchasing a home? Do you want the ability to use your money without overspending and feel the need to keep funds separately? Do you like being able to automate your savings growth? Having your weekly or monthly savings funds automatically move to your savings account can help you more quickly pay off credit cards or reduce your debt.
2. Research
Peruse the internet and compare yields, interest rates, and benefits offered by competing banks. Focus on fee-free accounts that will save you the trouble of monthly fees and minimum balances.
3. Access
How do you like to access your money? Do you prefer in-person or virtual transactions? Does being able to transfer funds at the click of a button excite you or worry you? Do you prefer to pay with cash or cards? More and more businesses are accepting virtual payment apps such as Venmo or Cash App and having the ability to move funds between accounts at the push of a button can make paying with these much easier.
4. Insurance
If you keep more than $250,000 in funds at one time, you can avoid insurance maximums, therefore keeping more of your money FDIC insured.
Make sure to schedule a regular time of the week to review your accounts. Make any adjustments that you feel can benefit your financial growth and goals. If you feel you could use some help managing multiple accounts, work with your banker or debt consultant to help make sure you are maximizing your benefits. With 2022 winding down, it’s time to start making your goals and dreams a priority. That means utilizing all opportunities available to you to reach those savings goals, reduce your debt and earn yourself the freedom to do the things you enjoy. Perhaps you will get to purchase that extra latte next year. We can all dream, can’t we?
