How Many Savings Accounts Should You Have?

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When you receive a paycheck, it goes into your bank account. Once you have the money, you can use it in various ways. Some people proceed to pay off emergency expenses, while others save up for a rainy day. Some people invest a percentage of their paycheck. 

Since we use the money in different ways, does it make sense only to have a single savings account, or should you have multiple accounts? We will share why it’s a good idea to have multiple savings accounts and suggestions for your next account.

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Should You Put All your Savings into One Account?

A savings account gives you a place to store money. However, limiting yourself to a single account isn’t the best approach. Creating multiple savings accounts helps you manage money better and stay on top of your goals. Banks don’t have limits regarding how many savings accounts you can open.  

Reasons For Having Multiple Savings Accounts

Having multiple savings accounts comes with several benefits. We have outlined some reasons to create several accounts.

Makes Achieving Financial Goals Easier

Each savings account gets a purpose. For example, you can set up a savings account for emergency funds and another for investments. Monitoring how much money you deposit into each account lets you measure progress.

Makes Budgeting Easier

Keeping your money in the same savings account can lead to overspending. If you’ve withdrawn money from the account before, nothing will stop you from doing it again. Consumers with multiple savings accounts can distinguish between spending money and savings. You can deposit a portion of each paycheck to savings accounts designated for investments, tuition, a down payment, and other expenses. Then, you can use spend the remaining money on other expenses.

Reduce The Chance of Misspending 

Everyone is prone to misspending their money, but separating accounts makes you less susceptible. You can move some money to emergency and investing accounts before spending a penny. Having fewer funds spread across multiple accounts will make you feel as if you have less money to spend. You can also transfer funds to accounts from different banks to make it more challenging to overspend.

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Multiple Bonuses And Rewards

Banks offer bonuses and rewards to people who open up new accounts and fulfill specific requirements. Most bonuses and rewards revolve around making a minimum deposit and holding funds in the account for a set amount of time. 

TD Bank is currently offering a $200 bonus to anyone who deposits at least $20,000 within 20 days and maintains that balance for 90 days. You will get a quick 1% return on your capital, far more than what you’ll get from your savings account’s interest rate. 

You can create accounts in several banks to capitalize on more of these bonuses. Many banks offer $100-$200 if you start a new account and make a qualifying deposit. You can’t continue receiving bonuses and rewards for creating multiple savings accounts with the same bank. 

Multiple FDIC Insurances

The Federal Deposit Insurance Corporation adds an extra layer of protection to your funds. FDIC-insured banks protect up to $250,000 per account. If the bank fails or a thief steals money, you will get reimbursed. Some people accumulate more than $250,000 in a bank account, leaving some funds uninsured. Creating multiple bank accounts gives you more coverage. For example, you can be fully insured if you have $400,000 spread across two accounts. Keeping all of that money in a single savings account leaves $150,000 uninsured. The more money you save, the more critical it becomes to have multiple accounts for money protection.

Types Of Accounts You Should Have

Want some help with creating savings accounts that align with your goals. We have some savings account ideas to get you started.

Checking (Spend) Account

The checking account covers everyday expenses. People with several bank accounts often put their paychecks in this account first before distributing money across other accounts. You can create multiple checking accounts, but ensure your primary account has low or no monthly fees, mobile banking, and other perks. 

If you want your account to do more for you, you can open an account with Current. Their cash rewards Visa debit card allows you to earn points for cashback on eligible purchases. You can earn up to 15 points for every eligible dollar you spend and exchange points for cash or rewards1. Current comes with additional features, such as overdraft protection up to $2002, spending insights to track your expenses, access to direct deposits up to two days early3, and 4.00% Annual Percentage Yield “APY” 4 on funds in your Savings Pod through their Current Interest feature. You can download the Current mobile app and open an account through them to gain these advantages.

Lifestyle Checking Account

You can create multiple accounts to address spending categories. If you decide to create several accounts on Current, make sure you include a lifestyle account. This account is your “fun money.” These funds can go toward entertainment, dining out, fitness investments, and miscellaneous items.

Bills Checking Account

A “bills” checking account addresses your monthly expenses. Calculate how much you spend on utilities, housing, vehicles, and other recurring costs. Making late payments will hurt your credit score and lead to significant consequences if the bad habit continues. This checking account helps you keep up with bills and allocate paychecks properly.

Emergency Fund Savings Account

Life throws many surprises at us, but an emergency fund leaves us more prepared. You may get laid off or fired from your job. This kind of event would have a devastating impact on your finances, and it can take several months to land a new job. Furthermore, you or a loved one may need medical attention in the future, which means high medical bills. Allocating some money to an Emergency Fund each month helps you with the unexpected.

Goals Savings Account

Setting financial goals makes you more intentional about each purchase. You’ll spot opportunities to make more money and expand your career. Creating savings accounts for each financial goal gives your pursuit more perspective.

Aspiring homeowners can set a down payment goal and create an account for that savings goal. Other people may prefer saving up for a new car or a family vacation. You can create separate accounts for each goal, but most savings accounts have low-interest rates. Current comes to the rescue with Saving Pods. 

Saving Pods enable users to put money aside automatically using scheduled deposits and round-ups, which allow users to automatically allocate funds every time they swipe. Savings Pods provides a 4.00% APY return on your investment on up to a total of $6000. This rate of return helps people achieve their goals sooner without the risks of investing in stocks and real estate. 

How Many Savings Accounts Should You Have?: The Bottom Line

Every person has different financial goals. However, most people have more than one goal. No one only wants to pay the bills. People want to save up for important purchases, emergency funds, or a family vacation. 

It doesn’t make sense to use a single savings account to accommodate all of your goals. Spreading the money across multiple accounts helps you measure progress toward each goal. Creating savings accounts at different banks provides more cash and rewards. 

When we went to school, we had folders, notebooks, and textbooks for each subject. We didn’t have a textbook that had everything related to math, science, writing, art, and history. We have separate textbooks for each subject. Treat your financial goals in the same way by creating several savings accounts instead of cramming all of your funds into a single account. Current can help you on the right track. They let you create several accounts and capitalize on 4.00% APY. Download their mobile app to get started.



  • Current is a financial technology company, not a bank. Banking services provided by and Visa® Debit Card issued by Choice Financial Group, Member FDIC, pursuant to a license from Visa U.S.A. Inc and can be used everywhere Visa debit cards are accepted.
  • 1Teen accounts do not earn points
  • 2Please refer to Overdrive™ Features Terms and Conditions.
  • 3Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits. 
  • 4The Annual Percentage Yield (“APY”) for Current Interest is variable and may change at any time. The disclosed APY is effective as of April 1, 2022. No minimum balance required. Must have $0.01 in Savings Pods to earn Current Interest on up to $2000 in deposits per Savings Pod up to $6000 total.  Please refer to Current Interest Terms and Conditions.

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