When you want to fine-tune your financial health, opening a savings account is usually one of the first recommended steps. This simple practice can help you set aside money for emergency expenses, save up toward a goal, and increase your wealth with interest. But while having one account has benefits, opening several could make your life even better. To help you enhance your financial strategy, here are a few reasons why it pays to have multiple savings accounts.

3 Benefits of Opening Multiple Savings Accounts

1. Prevent Premature Spending

One of the best advantages of savings accounts is that they keep money out-of-sight and, in turn, can limit your desire to use the funds. If you keep all your money in a single account, you’ll be more likely to use funds for a purpose other than you intended. With separate savings accounts, you can designate each one with a specific goal—such as paying for college tuition or putting a down payment on a house. 

2. Simplify Goal Tracking

Although saving money can require discipline, watching your balance grow can provide extra motivation. Unfortunately, if you only have one savings account, you won’t be able to tell how much money is saved for what purpose.

When you reserve individual accounts for certain savings goals, it’s easy to track how far along you are in the process. If you want to achieve one goal faster than the other, you can set up automatic transfers from your checking account to ensure accurate deposits are being made.

3. Improve Interest Earnings

Interest is a common incentive for having a savings account. By storing your money in the account, your financial institution will compensate you with additional funds at a percentage of your total balance. This interest, however, can vary depending on where you opened the account and how much you have in it.

To maximize your earnings, consider opening a new savings account if one with a higher interest rate appears. It’s also best to coordinate high-interest accounts with major expenses. The more money that these accounts have, the more interest they will earn over time—especially if you don’t make withdrawals.

Providing a variety of savings account options in Lincoln, NE, Spirit of America Federal Credit Union is a leading resource for those in search of better money management. From education plans that offer tax benefits to general savings that build wealth with dividends, this team will connect you to the right program for your needs. Insured by the National Credit Union Administration, this institution also provides affordable personal loans, investment products, credit cards, mortgages, and checking accounts. Visit this provider online or call (402) 467-1102 to learn more about the ways they can help you achieve financial wellness.