having more than one saving account is useful or not

POSTED BY rajan.panchal24 ON March 28, 2012 11:10 pm COMMENTS (9)

Which is a good way to save money..

1.To have two savings accounts , one to save for your goals and other for household expenses.
2. Two have only one saving account for both the things.

This is more of a psychological question. Just wanted to know your views on this.
I personally like the 1st option as it keeps the mess out of reach from your money you want to save for future.

Thanks in advance

9 replies on this article “having more than one saving account is useful or not”

  1. BanyanFA says:

    Hi Manish,
    Thanks for this update. I think such promotions have always being there. If you notice, that you are funding the cost of your saving bank via a FD. I am not negative with this idea, but just opening a saving bank account for the same of a No Minimum balance doesn’t sound great. I should get a free car before I would opt for this offer 🙂

    You may not believe it, but in developed countries like UK, they offer you money to open your account with a bank and if you deposit a specific amount every month, even though you can withdraw that amount the next day !


  2. Manish awasthi says:

    Banyan FA… these days banks are opening up Zero balance savings account if you open a FD with them. I opened bank FD in yes bank .. yes bank opened my sb account with ZERO AQB…..

    So one doent need to maintain 10K or 20 K in sb accounts..


  3. I think option 1 is advisable. However, maintaining too many accounts will lead to more paper work, more queries, more reconciliation and more problems.

    maintaining two account is advisable as we can use other account, in case of failure of atm of first account or anything like that.

  4. cpdhutadmal@yahoo.com says:

    The option of having two seperate accounts for two purposes is a good idea. However, if you are not investing the amount from the investment account, it is of little use. The same thing can be achieved by giving standing intructions to the bank even if you have one account.

  5. BanyanFA says:

    Hi Rajan,
    You have raised an interesting point here. People have multiple saving account without any specific motives. With increasing minimum bank balances, each saving account increase the sunk cost of having an account. For example ICICI requires a normal saving account to have around 10K balance. If you have 2 accounts, you would need 20K balance.

    Along with it comes a hassle to maintain two accounts and yearly skim through each of the account to identify any income credits which you need to report for tax returns.

    A better option is to have just one account and maintain a credit card. Try to expend as much as possible via your credit card and make a monthly payment into it via your bank account. This way you would be able to maintain a track of your expenses as well as avoid cluttering your bank account. It would also help you in improving your credit history.


  6. TheZionView says:


    Please provide the examples its always good to see with examples.
    I dont have 2 SB accounts but might consider having one opened if the points for extra SB are stronger

  7. Dear Rajan, option 1 is advisable.



  8. Adding to what JGMM said, i would also like to include, from safety perspective
    two accounts are better than one. In bigger cities/Metro it makes sense to carry a ATM card that has lesser money.
    The account that has bigger portion of money should be stored in safe place.

    Not sure if my readers would be able to visualise the kind of risks i am trying to convey. willing to provide examples if i sound unclear

  9. I would agree with option 1 above.

    Th first expense in a month must be your savings. Thus when you get a salary a part of it must be taken out – preferably to a different account. In fact is is recommended to do SIP, Stock trading, receive dividends, invest in bonds etc. from this second account so you really can keep your expenses and savings in different accounts. Agreed this is psychological but very practical as well.

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