If growing and protecting your money is important to you, then adding a second, third, or fourth savings account to your portfolio is a good idea.
Contrary to popular belief, there is no limit to how many savings accounts one person can open... and many people believe one is enough. But opening multiple accounts can help you get the most out of your cash. If you’re someone whose loyalties lie with one bank, chances are you are missing out on several benefits. Here are four reasons to open multiple savings accounts:
1. Grow your savings faster
A smart savings hack is to open several fixed-term accounts of different lengths. This way you will benefit from long-term rates while always having some money available as accounts mature at chosen regular intervals. As rates change, money can be moved accordingly to get the best returns on the highest balance. Explore Flagstone’s latest interest rates.
2. Track the progress of your goals
Having different accounts for individual savings goals (such as a house deposit or emergency fund) allows you to see how much you have set aside for each. It makes it easier to monitor spending patterns and encourages healthy saving habits.
3. Protect your cash
Since the collapse of Northern Rock bank, the safety net for savings has been considerably improved. But savers still face risks. Any savings over £85k in an individual account and £170k in a joint account is at risk of loss if the bank was to fail. Spreading and diversifying cash between a number of banks can give you FSCS protection, keeping your money safe and insured.
4. Minimise the chance of misspending
Creating clarity around how much is saved for each goal also highlights how much is available to spend, reducing the temptation to dip into funds and preventing overspending. Withdrawal restrictions on certain savings accounts will also stop you from exhausting your cash.
How do you manage multiple accounts?
Opening and managing several accounts might seem like arduous work and admin – but it doesn’t need to be that way. Cash deposit platforms, otherwise known as savings marketplaces, are making it easy for consumers to open and move money between multiple accounts.
Flagstone’s cash deposit platform offers access to a wide range of savings accounts with varying banks and terms. With just one log in, it eliminates the hassle of application forms and allows you to move money around with ease. This new way of saving is helping people grow and protect their cash so they can plan for the future.
This article is not advice. If you would like to get advice on your savings and investments, consider speaking to Financial Adviser.