I have come to the realization that multiple savings accounts is the kind of thing that is so naturally intuitive and refreshing that, on first glance, the idea seems too obvious or too good to be true. I simply find it surprising that it took me so long to stumble across this idea and that most people I know haven't really caught on to the idea yet.
I think this attitude stems primarily from this blasé notion of banking that much of America seems to share. My guess is that people have this idea that Bank of America is probably the best they can have, so they often miss opportunities from other banks like ING Direct, FNBO Direct and Ally Bank. Each of these online banking institutions offers the ability for you to create multiple savings accounts with ease and at no expense. You don't even have to create multiple logins.
How It Works
You don't often realize the beauty of having multiple savings accounts until you actually have them and get to mess around and experiment. Before having multiple accounts, I (like many other people I presume) had a checking and savings account. Mine were both held by Bank of America. The idea of having multiple savings accounts didn't even occur to me for the first couple months after switching to ING savings; I just signed up for the higher interest.
It wasn't until I finally had my emergency fund the way I wanted it that I realized a need for multiple accounts. I had never been much of a saver before (by virtue of being very poor), so after reaching my goal of saving a certain amount for an emergency fund, I quickly thought of other things I wanted to save away for. But it became pretty difficult managing which savings goals I had and what amount of my funds in my savings account went to which goal.
This all simplifies magnificently with multiple savings accounts because you can designate each account for a particular goal. Best of all, once that goal is completed and you spend the money you saved, you can rename the account nickname to suit a different financial goal of yours. And all of this account maintenance comes free of charge, of course.
For any of you who use Mint.com, you will be happy to know that multiple savings accounts pair seamlessly with Mint's goal system. Right now, I have an "Emergency" goal (which is already met, but I keep the goal there just to remind me it's there if I need it), "Europe Trip" goal, and "Big Purchase" goal. Each of these goals are separate accounts, but all manageable through the same ING login, and I know exactly what track I am on the completing this goals.
All of this organization within my savings has made me more savings-conscious. I have been budgeting better because I have a very clear idea what I am saving for and when I will reach that goal. Every long-term expense has become that much more in reach, all thanks to the organization I get from multiple savings accounts.
About the Guest Author
This guest post is contributed by Angelita Williams, who writes on the topics of online courses She welcomes your comments at her email Id: angelita.williams7 @gmail.com.
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