How many is too many? When it comes to savings accounts, is there such a thing as 'too many'? There are a number of good reasons for having multiple savings accounts and we look into the ways they can help you to save.
Having multiple savings accounts can enhance the way you organise your finances and save for specific goals.
Saving for a goal
If for example you're saving for a wedding, a holiday and home improvements, it'll be easier to track the progress of each by keeping them separate. This will also enable you to prioritise your goals so that, should you need to, you could reduce one pot and increase another.
Having short to medium term goals such as a wedding or holiday could lend themselves to having an ISA or a notice account, whilst long term goals such as retirement could see savings deposited into a Bond.
In addition, because your savings up to £85,000 are protected by FSCS in the event of a bank ceasing trading, you may want to put your savings into different banks to keep your money safe if the worst should happen and your bank closes.
High interest rates
A further benefit to having more than one savings account could be to benefit from a high interest rate, without tying up all your money in one fixed term savings account. Perhaps you want your money to do different things for you over time, so you're in need of, for example, an ISA that will grow as well as a notice account that holds money for a rainy day, or an instant access account for an emergency.
If you'd like to separate out your savings and open another account, take a look at our personal savings page.