Know the pros and cons of having multiple savings accounts

When it comes to depositing your extra money, savings account must have come as the most basic financial product for that income in your mind.

The introduction towards banking universe starts with savings account, and it would not be wrong to say that we all have at least one of these accounts despite other schemes available for investment.

There are people who love to have multiple savings accounts. We need to understand the pros and cons of having many savings accounts.

Savings accounts

Under this account, you can save money, transfer funds, withdraw money and also earn interest on the funds you have deposited. This is considered as the best form of storing your money, as it gives dual benefit of liquidity and interest.

There are different types of savings accounts like specialized accounts for kids, savings account for women, pensioners savings account and also lifestyle and usage savings account.

Interest rates on these accounts are calculated on the minimum account balance and are usually credited to you on half yearly basis or quarterly basis depending on the savings account type and the bank’s rule.

At present, many banks are offering interest rate ranging between 3.50% and 7% depending on the amount of deposits made in these accounts.

Banks have limited number of transactions on savings account, somewhere between 3 and 5 per month.

Now that we know, what exactly is savings account, but the question remains as to why we should have more than one savings account.

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