Banking Savings & Money Market Accounts

5 Reasons Why You Might Want To Open More Than One Savings Account

There's no rule that says you have to keep your savings all in one place, but what are the benefits of having multiple savings accounts?

By Matt Miczulski
and Kate Underwood

Edited by Melinda Sineriz, ABFP™

Updated Aug. 20, 2025

We all have things we're saving for, and — let's face it — anything that might help us reach our goals faster and easier is worth considering.

Nowadays, many of the best banks (particularly online banks) offer perks like competitive interest rates and no minimum balance requirements on their savings accounts, which can help make the process of saving more rewarding. But is that all you can do to maximize your savings?

Not necessarily.

I love keeping more than one savings account, in part because it helps me to visualize my goals. When I look at the names of each of my savings accounts, I remember why I'm putting away $25 or $50 or $100 a month for each future need. It's a motivational tool.

There are several compelling reasons to stash your savings in more than one account, and possibly at more than one bank.

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Why you should consider opening more than one savings account

Saving doesn't need to be relegated to a single account, but you may not have thought of all the potential benefits of multiple savings accounts. Here are some of the reasons you can supercharge your savings through opening more than one savings account.

1. Organize and automate savings for multiple goals

Keeping your savings in multiple accounts is a great way to save for multiple goals. Keeping all of your savings in the same place could lead to overly high balances, making it hard to track how much you've accumulated for different goals.

Multiple accounts may seem complicated, but they actually make it simpler to organize your savings. Sinking funds, or accounts where you sock money away for upcoming expenses like new appliances or vacations or your next vehicle, are one way to think about your savings accounts. There's also your emergency fund, which you need to keep separate and only withdraw money from in a real emergency.

I've always loved the concept of creating different saving accounts, whether at the same banking institution or not. It's fun to create names for them based on their purpose. I once had a savings account titled "Riviera" because the French Riviera was a dream travel destination at the time, and every time I logged into the account, I could see the balance and imagine myself on that trip. (I've since learned the Riviera's not really my style, but I've been to Paris a few times!)

You might open up savings accounts designated for any of the following:

Emergency
Travel
Home repairs
New car
Starting a business
Holiday gifts
Wedding
Veterinary expenses
Fertility treatments or adoption expenses
Other

Basically, having multiple accounts allows you to monitor each one to plan how much you need to save for each goal. You might not actively deposit into each one every month, but keep an eye on the balances so you know how much more you need.

With separate accounts, you might find it easier to automate your savings. While you can set up recurring transfers with a single savings account, multiple savings accounts allow you to assign specific amounts to deposit on a weekly, biweekly, or monthly basis. You can turn off automatic deposits when you feel comfortable with the total on a particular savings account.

2. Keep your emergency fund separate

Keeping your emergency fund separate from any other savings goals is really important. Why? Because if you lump all of your savings into one place, it might be tempting to withdraw more than you intend to, or make withdrawals for the wrong reasons. Emergency savings need to be earmarked for emergencies only.

So if the idea of multiple savings accounts for different savings goals seems too complex, at the very least it's wise to have two accounts: one for emergencies and one for other savings

I like the idea of even keeping your emergency savings account at a different bank as a way to further safeguard that money from spending. You need that for sudden medical expenses, home repairs that can't be postponed, or paying bills in case you lose your job, so keep a minimum amount in your emergency fund if possible.

3. Take advantage of multiple bank bonuses and perks

You can often access different bank account bonuses or perks by opening up more than one savings account. You may love the APY at one online bank, but also like a different bank for its in-person features or an extensive ATM network. Plus, some high-yield savings accounts may offer a cash bonus or other benefits upon signing up.

Let me tell you, I research and write quite a bit about financial products like high-yield savings accounts, and I'm always on the lookout for a new one to try out. It requires some organization, of course, but it's exciting when I come across a HYSA that has a feature or bonus I'd like to access.

Opening several savings accounts enables you to explore the features of more than one bank and discover if you prefer a certain bank to others. When you want to choose the best savings account, there's no harm in testing out more than one option, and you're not obligated to keep an account if it's not serving your needs (for example, if it charges a monthly fee or you can't meet the minimum balance requirement).

4. Ensure full FDIC protection

When you open more than one savings account, you give yourself more room to receive full FDIC protection on your money. Savings is money you need to protect, so if you have savings balances above $250,000 in a single account, you risk losing some of it.

The FDIC ensures that the first $250,000 of your money is protected in case the bank goes under. That's $250,000 per depositor, per insured bank, for each account category.

So by having different types of accounts (savings accounts and CDs would be different categories, for example), you spread out your risk. Plus, if you and your spouse each have a separate savings account at the same bank, you'd each have up to $250,000 in FDIC coverage on your own accounts.

You can also have savings accounts at separate banks or financial institutions. Not everyone has the problem of saving enough money to exceed FDIC insurance limits, but it's something to keep in mind!

5. Avoid exceeding transaction limits

Do you need to make a lot of withdrawals from a savings account in any given month? If so, you might benefit from having a few different savings accounts, in case some of them enforce a limit on transactions.

In 2020, the Federal Reserve changed its Regulation D, which limited "convenient transfers" from savings accounts to no more than six per month. Now, financial institutions can decide whether to enforce this rule or charge fees for transactions exceeding six per month from savings accounts.

So what this means is your bank might allow unlimited withdrawals from your HYSA, or it might cap you at six per month. You definitely don't want to incur fees for taking out money too many times in a month.

I don't usually make a lot of withdrawals from my savings accounts — honestly, that's because they're for saving and not for spending. But eventually, everyone needs to take money out, and sometimes you need more flexibility for a period of time and more than six withdrawals in a month.

If you open more than one savings account, you can skirt these limits. Maybe you have one account with features you love, but that limits your withdrawals. Your second account could be at a different bank or even the same one, but that adds six more monthly withdrawals you can use as needed.

Best places to open multiple savings accounts

If you're interested in opening a new online savings account, you've got plenty of options that help increase your overall savings. Here are some of the best savings accounts that let you save for multiple goals.

Alliant Credit Union High-Rate Savings

Anyone can join Alliant Credit Union³ Special offers are subject to change. Alliant Credit Union may discontinue Introductory Rate Home Equity Line of Credit offers without notice, regardless of originally advertised offer period dates. All new accounts and loans are subject to approval. All loans are subject to Alliant Credit Union lending policies. Under certain circumstances—for example, if we cannot verify your income, or if any accounts are past due, over limit or if other underwriting criteria are not met—we may not be able to open a loan account for you, in which case you will be notified. Responding to this offer is not a guarantee of approval. Alliant Credit Union does not sell member information. See our Privacy Policy for details. Interest-only Home Equity Line of Credit. Home equity products are available in the following states: AZ, CA, CO, CT, FL, GA, HI, IL, IN, KY, MA, MI, MN, MO, NC, NJ, NV, NY, OH, PA, TN, UT, VA, WA, WI and Washington, D.C. The minimum loan amount is $10,000. The minimum loan amount is $25,001 in WI and Washington, D.C. Offer subject to credit approval, which includes verification of application information and receipt of collateral documents. Rates and closing costs are subject to credit qualifications. Maximum loan to value of up to 85% depending on state in which the property is located and credit worthiness. The following states are limited to a maximum of 80% CLTV: AZ, CA, CO, FL, GA, IN, MI, MO, NC, NV, TN, UT. Initial rate is based on loan amount, loan to value and credit history. We may not extend credit to you if you do not meet Alliant criteria. The Annual Percentage Rate (APR) is a variable rate. Your qualifying rate may adjust monthly and is based on the highest Prime Rate as published in The Wall Street Journal as of the date of any rate adjustment plus or minus a margin. The APR range is from 7.75% to a maximum of 16.00%. Loans without automatic payment selection from an Alliant Credit Union account are subject to an increase in rate and margin of 0.25%. No closing costs (excluding applicant ordered appraisals) based on Interest-only Home Equity Line of Credit (HELOC) loans up to $250,000 and meeting Alliant criteria. A fee of $1,000 is applied to Interest-only HELOC loans more than $250,000. Minimum payment will not repay principal, which will result in a higher principal and interest payment at the end of the 10-year draw period. Costs to satisfy certain prior liens may be assessed. The Annual Fee of $50 will be waived the first year but will be assessed in subsequent years. You will incur the annual fee even if you don't have a balance. Property insurance is required. Flood insurance may be required. We will require a full appraisal, at applicant's expense, in the event your property is in a FEMA-deemed natural disaster area. If the state and/or county in which the collateral is located charges additional fees and taxes, the borrower will be responsible for payment. A $200 termination fee may be applied to an Interest-only HELOC cancelled or closed by the borrower within 36 months of origination. Refinancing of Alliant home equity products available; $250 fee on loans that do not increase the credit limit by $10,000 or more. Rates, terms, and conditions subject to change. Other restrictions may apply. Interest-only HELOC loans available on 1-to-2-unit owner occupied dwellings. Please consult with an Alliant Loan Consultant at 800-328-1935 ext. 2570 for more information on an Alliant Interest-only Home Equity Line of Credit. Alliant Credit Union is federally insured by the NCUA and is an Equal Housing Opportunity Lender and open a High-Rate Savings account, and more people probably should. It earns up to 3.10% (as of 12/19/24) APY¹ The savings dividend provides an Annual Percentage Yield (APY) of 3.10%. The APY is accurate as of the 6/26/2025 dividend declaration date. Dividends are paid on the last day of the month to accountholders who have maintained an average daily balance of $100 or more. Savings dividend may change after account is opened and is subject to change at any time. Dividend applies to Savings, Supplemental Savings, Emergency Savings, Kids Savings Accounts, UTMA Custodial Accounts, Trust Accounts and IRA. Fees may reduce earnings on the account. with no strings attached — and by strings, we of course mean monthly maintenance fees or requirements to earn the best rate, although you do have to deposit at least $100 to open it. Plus, it comes with a savings ATM card, making it easy to pull cash out of your account for quick spending.² Transactions performed at other ATMs may be subject to the ATM owner’s surcharge fee. Please see the online ATM Locator at www.alliantcreditunion.com or our mobile banking app for a list of ATMs that accept deposits or are fee free. Not all ATMs accept deposits.

But what we really like about the Alliant Credit Union High-Rate Savings account is that it gives you the option to open not one, not two, but up to 19 supplemental accounts for the purposes of saving for different goals. For example, you could have one or two for emergency funds, one for your vacation savings, one for holiday spending, and so on. So rather than opening more than one savings account with different institutions, you can open just have one savings account with this online credit union to start, then open bonus accounts as needed without having to go to another institution. It's a smart way to save.

Visit Alliant | Read our full Alliant Credit Union review

Ally Bank Savings Account

The Ally Bank Savings Account is another one that gives you the option to save for multiple goals with separate stashes called "buckets". The account earns up to 3.50% APY, and you'll earn the same rate on your total balance. Ally also provides features to help you save more, including round-up transfers when you spend with a linked debit card and a tool called "Surprise Savings" that can find money you don't have earmarked for bills or other spending and transfer it to your savings for you. These features, called savings boosters, could help you save more with less effort.

While using buckets isn't exactly the same as opening more than one savings account, it could be just as good or better if you don't need more FDIC insurance or think you'll exceed monthly transaction limits. It makes more sense to open one great high-yield savings account earning a competitive rate than to open accounts in different spots and lose track of your balances (or forget to save) anyway.

Read our full Ally Bank review

Potential downsides of multiple savings accounts

I have to include a few words of caution here. Even with all of the benefits of opening more than one savings account, you don't want to go crazy with this. Know your limits, and it may be a good idea to start with just two (one for your emergency fund and one for general savings).

Can be complicated to keep track of requirements

If you're going to have a bunch of savings accounts, be sure to get a system in place so you're organized. A spreadsheet can help you keep track of it, but you need to at least monitor things like where the accounts are, login information and passwords, fees, APYs, and minimum balances. If you're not willing to do a little bit of legwork, you should be cautious about opening too many accounts.

Minimum balance requirements and fees

If you select HYSAs with minimum balance requirements, be sure they aren't too much for you to handle. For instance, if you chose the CIT Platinum Savings with its $5,000 minimum balance and you don't plan to keep much more than that overall, it wouldn't make sense to have several other savings accounts as well. So be aware of which accounts will drop your APY if your balance goes below the required minimum, and adjust your number of accounts as needed.

The same issue applies to fees. If you sign up for three different savings accounts that charge monthly fees, your costs add up. But if you choose fee-free accounts, it's much easier to keep multiple accounts open and active.

FAQ

Is it a bad thing to have more than one savings account?

Not at all! It's great to have more than one savings account because you're ideally saving for different purposes. Keeping your emergency fund separate from accounts for new cars or travel or gifts is a good way to avoid accidental withdrawals or spending down your savings too quickly.

Why do people have more than one savings account?

You might open multiple savings accounts to help reach different savings goals. If you want to save for a down payment on a house and also start building a college fund, it could make sense to separate those funds. Whatever your various savings goals, having separate accounts can make each of your goals easier to track because the money from multiple goals wouldn't be combined.

Is a bank or a credit union a better option for saving money?

The better option for saving money between different banks and credit unions depends on your financial goals and situation. With credit unions, membership may come with restrictions, but you may appreciate being a member and therefore part owner, instead of just a customer, but that doesn't mean credit unions are necessarily superior.

Always check fees and APYs on savings accounts before signing up at any bank or credit union. You may find that fees are lower at credit unions vs. banks, though that's not always the case.

Bottom line

The best savings accounts are reliable vehicles that can help you accomplish your goals and gain financial security, and high-yield savings accounts are even better because you earn significant interest. Keeping things overly simple by having only one savings account could limit your earnings and how you manage your savings.

It's a good idea to have your emergency fund separate from any other savings accounts, and you can even monitor your savings goals more carefully with multiple short-term savings accounts. Stick with one bank or try a few different ones to take advantage of their different perks.

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Get your paycheck up to two days early⁷ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
Access additional FDIC insurance up to $3 million⁸ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.

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