If you need more than one standard savings account, you must check your bank’s fees, rates and limits. Today, most online banks give higher savings rates and lower fees than traditional banks. It is, therefore, advisable to have multiple savings accounts in online banks. But how much is too much? Here is why you should or shouldn’t have multiple savings accounts.
Having multiple savings accounts would become a bad choice if you start to incur monthly maintenance fees on all the accounts. Many have a restriction on the number of savings accounts a person can have. These policies are different in each bank.
- Some banks limit customers to six withdrawals each month per account. However, this does not include ATM or branch withdrawals.
- No matter how many savings accounts you have, make sure to avoid fees for too many withdrawals.
- Regulation D rule is used to limit savings account customers to six transactions a month per savings account, excluding ATM or withdrawals at a branch. This rule was revoked because of the covid-19 pandemic; however, some banks might still charge for numerous transactions. It’s advisable to read the bank’s policy before you open the account or make a transaction.
Some banks and credit unions have the option of changing the name of the accounts based on the savings goal. Though you can name the accounts with any random name, it is advisable to call them “emergency fund,” “car fund,” or “housing fund.” This would not only save you time but would also be helpful if someone else has to access your account during an emergency.
These six financial institutions offer the highest annual percentage yields (APYs). Moreover, they don’t charge any monthly fees and you can also personalize your account by changing the account names.
The account you should look for is: Ally Online Savings Account
Features: They have customer service 24 hours every day. You get savings APY of 0.50%.
Account to look for: Discover Online Savings
Features: No exorbitant fees on withdrawals. You get a savings APY of 0.40%
The account you should look for is: Barclays Online Savings Account
Features: You need not have a minimum balance. You get savings APY of 0.40%
Alliant Credit Union
The account you should look for: Alliant High-Rate Savings
Features: Their eligibility criteria make it easy for people to join. You also get a savings APY of 0.55%.
Capital One 360
Account you should look for: Capital One 360 Performance Savings Account
Features: Easy access to branches. You get a savings APY of 0.40%
The account you should look for: Synchrony High-Yield Savings Account
Features: You need not have a minimum balance. You get a savings APY of 0.50%