Every Bank Account Adults Need to Have

Most adults understand, on a basic level, the difference between checking and savings accounts. However, that doesn’t necessarily mean that they practice good financial habits. One GOBankingRates survey found that more than a third of Americans have zero money saved in a savings account. About an equal number admitted that they only had several hundred dollars stashed away in a savings account.

If you’re looking to take charge of your finances, you should consider opening more than one savings account. That’s right, not only should you have one savings account, but you should divvy the money that you’ve set aside into different locations.

Below, we’ve detailed why you should consider allocating your funds into different accounts and the benefits associated with doing so. We also listed every bank account adults need to have to help get you started.

The Benefits of Using Multiple Bank Accounts

Considering that people find it so difficult to get a savings account off the ground, why would adults want to have multiple savings accounts? You'll find a couple of primary benefits of doing so below.

Also, check with your employer to see if they can split your direct deposit payments. Doing so will make it easier for you to allocate money. If it goes on behind the scenes, you're much more likely to stick with your new program.

Jan Estep, CEO of the National Automated Clearinghouse Association, told Consumer Affairs, “Just like retirement savings, if you automatically save the money, you are less likely to spend it.” She also said that those who do so save $90 more per month.

Targeted Savings Goals

If you put lump sums into your savings account – or worse, your checking account – it can feel as though the money is stockpiling with no purpose. By opening separate accounts, you bring clarity to your financial situation. Having multiple accounts can help with budgeting. If you’re someone who overspends or struggles to save, having targeted, clearly-defined accounts and goals can help.

It’s Easy to Do

Many online banking websites now allow you to set up multiple accounts with no penalty. They make it easy for you to diversify your funds and spread them into different accounts. Since there’s no penalty to do so, there’s really no excuse not to. 

You’re Insured

Most accounts offer up to $250,000 in FDIC insurance. If you keep all of your savings in one account, there’s a chance that you exceed this limit. If something were to go wrong, like your bank shutting down, you could only recoup some of your funds. Setting up different accounts is an excellent way to keep your money safe. 

The Different Types of Accounts Adults Need to Have

Curious about where to get started when saving money? Consider the following list of every bank account adults need to have.

Rainy-Day Fund

The first account you should have when saving money is a rainy-day fund designed explicitly for emergencies. This is an account that you only touch in dire situations. Examples of what you could use a rainy-day fund for include:

  • Car repairs
  • Doctor and emergency room visits
  • Pet emergencies

Statistics show that 60 percent of Americans have less than $1,000 in savings. Ideally, your rainy-day fund would be worth anywhere from three to six months of income. That way, if you were to lose your job, you would have enough money to support you and your family while you search for new work. A rainy-day fund is arguably more critical than any of the other options on our list.

Future Purchases

Are you looking to purchase a new car? Perhaps you’re saving for a down payment on a home. Whatever the case is, you should have accounts dedicated explicitly toward these savings goals. Don’t keep this money lumped together. Instead, separate it by each financial goal.

Doing so allows you to measure your progress toward your goal objectively. For instance, you predict that you are going to need to finance a 20% down payment on a $400,000 home, meaning that you’ll need to have at least $80,000 stashed away.  If you know that this is how much you need, it’s easier to track if it’s in a single account.

His and Her Accounts

Nearly three-quarters of adults say that they have different money-management styles than their partners. However, when people get married, they combine their finances. The National Endowment for Financial Education reports that 40 percent of adults with combined funds report committing financial infidelity.  

Although having joint accounts is ok, you may also want to keep some of your money separate. Consider “His” and “Her” accounts that you can do with as you please. Use this money to treat yourself, buy gifts for one another and other similar things.

You’ll find that having a bit of financial freedom and flexibility will make your joint account more successful, and you’ll likely be more likely to have an honest and open approach to saving money as a couple. 

Final Thoughts

By spreading your money across different accounts, you’ll find yourself taking a more targeted and calculated approach toward saving money. Breaking your savings goals down into smaller amounts gives you something to work toward.

Savings can be overwhelming and challenging, especially if you have yet to be able to do so up until this point. With our list of every bank account adults need to have, you can get started saving quickly.

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