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How Many Savings Accounts Can I Have?

Savings accounts are useful places to park money that you're not going to use for day-to-day expenses. They are a basic part of financial security and partner well with checking accounts. If you already have a savings account, good for you! Now, consider what having more than one savings account could do for your financial goals, budgeting, and financial planning.

In this article, we'll look at the circumstances in which multiple savings accounts might be useful, tips for successfully managing them, and the options available to you at TD Bank.

Why you might need multiple savings accounts

There's no limit on the number of savings accounts you can own. Let's look at the reasons an individual or family might want to open more than one savings account.
 

Savings goals 

Multiple savings accounts could help you designate funds for specific goals.
Maybe your goal is to build up a cushion of emergency savings to deal with the unexpected: a job loss, a car repair, or a medical bill. You could deposit money regularly into an emergency fund account and never touch it until the need arises.

Depending on your current savings goals, and how many accounts you are comfortable managing, you can open separate savings accounts for:

  • A vacation
  • A down payment on a car
  • Home improvement or major purchase for your home
  • A wedding, anniversary, or birthday celebration
  • A new baby

What to consider about multiple savings accounts

When deciding whether to open more savings accounts, keep these factors in mind:

  • FDIC insurance. The Federal Deposit Insurance Corporation (FDIC) insures each depositor at each bank for up to $250,000 per account category. It might make sense, therefore, to have accounts at multiple financial institutions
  • Interest and APY. Look for the best offers and promos on interest rates and annual percentage yields (APYs). Online banks have some attractive deals, but you have to be comfortable managing accounts digitally only
  • Minimum balances. Do you have enough money to meet minimum balance requirements for each account to avoid monthly charges 
  • Staying organized. Make sure you're committed to your savings goals and are able to juggle the requirements of each account 

Tips for managing multiple accounts

Multiple accounts can complicate your life a bit, so be prepared. Here are some guidelines for managing multiple accounts. 

  • Find accounts that meet your needs and will help you accomplish your financial goals 
  • Automate your funds. Use direct deposit or automatic transfers so you have one less thing to think about. Keep in mind that it may not be easy or instant to transfer funds between financial institutions 
  • Keep track of accounts and balances. Select financial institutions with user-friendly online and mobile banking apps. That way, it's easy to check balances regularly to make sure you're not only avoiding account fees, but also making progress toward your financial goals. Opt-in to electronic statements to minimize paper

Savings accounts at TD Bank