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Is it worth having more than one savings account?
If you’ve got savings goals, splitting your money into different pots might help more than you think.
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Why people open more than one account: You’ve probably got a single savings account where everything goes—emergency fund, vacation money, that new laptop you’ve been eyeing. But lumping it all together can get confusing. Opening separate savings accounts lets you assign each one a job. It’s like labelling jars in the kitchen—you know what’s for what, and you’re less likely to mix things up or take money from the wrong place.
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Benefits of splitting your savings: When your emergency money sits in the same place as your birthday trip fund, it’s tempting to dip in for something fun. Separate accounts help avoid that. You’ll be able to track your progress for each goal clearly and stay more motivated. It also helps you plan better: if your travel account is growing slowly, you know you’ll need to boost your monthly contribution or adjust expectations.
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Is it too much to manage?: It depends on how organized you are. Some people find juggling multiple accounts overwhelming, especially if each one comes with login details, minimum balances, or app settings. But if your bank offers zero-balance savings accounts or lets you nickname sub-accounts in one dashboard, it gets easier. The trick is not to overdo it—just two or three accounts for your top goals is usually enough.
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How to start without stress: Begin by picking a goal or two—say, an emergency fund and a vacation. Open accounts specifically for those, and automate transfers into them each month. If your salary hits your primary account on the 1st, set auto-debits on the 2nd so savings happen before you spend. Keep the amounts realistic—₹1,000 or ₹2,000 monthly is fine. As long as you’re consistent, your balances will grow faster than you expect.
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Don’t ignore interest rates and safety: Interest matters, even if it’s just a few hundred rupees more per year. Some digital banks or private banks offer higher interest on savings, often with fewer fees. Just make sure any bank you choose is regulated by the RBI and that your deposits are insured up to ₹5 lakh. You want your money to grow, but not at the cost of safety.
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Stay organised: Having more than one savings account isn’t necessary for everyone. But if you’ve struggled to keep different goals separate or feel like your savings aren’t organized, it could help a lot. The system works best when it’s simple, automatic, and designed to suit your life—not someone else’s. Try it with two accounts to start. If it helps, great. If not, you can always go back to one.
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