Having just a regular savings account in the bank is disadvantageous. Having multiple ones is recommended. Here’s why. [10 Images]
~ Sunday, January 15, 2023 Blog Post ~
As a bank client since I was 17 years old, which was roughly 22 years ago when I was a college freshman, I learned tremendously, including the interesting and advantageous financial or monetary reality that having multiple savings accounts in banks can be beneficial.
I have a regular savings account and a term deposit account. I’m neither superrich or a one-percenter yet, but I’m still a middle-class saver at this point. That’s fine by me though and I’m infinitely patient. Haha.
Additionally, I’m well-educated when it comes to my finances. Of course, I don’t just mindlessly save money in the bank. My parents who were my first personal finance gurus encouraged me to study and analyze bank savings’ primary and significant purposes and long-term benefits.
First of all, having a regular savings account in a bank helps in the safekeeping and accessibility of one’s funds. A person’s hard-earned money becomes safe from theft and is properly accessible when he needs it.
Possessing a regular savings account also enables one’s saved money or idle funds to earn interest, which is extra money a person cannot get if he chooses to just keep his hard-earned money at home.
Nevertheless, the benefits of having only one savings account are merely these above-mentioned three advantages: safety, accessibility, and earning of interest, which is typically a pittance.
If a person has more than one bank account, such as having a time or term deposit account, he can relish several benefits.
First of all, besides the above-mentioned three perks, a saver earns more interest for his hard-earned money. He may also enjoy other benefits that other bank products offer such the following example advantages:
- More interest earned, which translates to more money for the saver;
- Built-in life insurance;
- Included investment products;
- Expert wealth management advice;
- Complimentary checkbook provided annually;
- Preferential or lower rates for pre-qualified personal, housing, and car loans;
- Preferential or higher deposit rates;
- Zero or waived fees for bank certification and statements on demand;
- Free funds transfer services;
- Free withdrawals at any ATM nationwide;
- Flexible saving at one’s own pace, with zero fixed schedules, penalties, and lock-in periods;
- Low maintaining balance;
- Quick and easy account opening with a few requirements; and
- VIP lane access in the bank.
These myriads of benefits a saver can relish if he avails of other bank products besides his regular bank savings account facilitates him to grow his savings safer and faster.
He can achieve his long-term life and financial goals sooner, especially if one of his bank accounts is a high-interest savings account that rewards him with additional quarterly and monthly bonus interest rates on top of his base interest rate as he saves his money.
Moreover, having multiple bank accounts lets a saver have a better banking experience. Various bank products feature different names and benefits. A bank client has to visit his selected bank’s website and discover these perks before opening an account.
He also has to coordinate with his bank’s authorized staff to be enlightened with the choices. In this manner, he can choose the bank product that suits his needs and preferences.
I learned that savers and investors stash money in financial institutions mainly for FINANCIAL GROWTH. They may also be after investing for the long-term, capital preservation, speculation, and so forth.
My salient analysis is that having more than one bank account is better than merely possessing one regular savings account because of the many perks a saver can relish which multiple bank products with diverse offerings provide.
Having multiple bank accounts can also serve a saver in different purposes. For example, his regular savings account can function as his salary account where his monthly wages get transferred by his employer.
His bank account with included investment or insurance product such as a variable universal life insurance can serve as his investment account for his retirement and family’s financial protection.
Apparently, opening multiple savings account is, indeed, advantageous. Therefore, if a saver can afford it or if he has idle funds, I highly recommend this financially beneficial step.
