How many savings accounts should you have?

News earlier this month The Federal Reserve is raising interest rates again May not be a surprise but it was still unwanted. Combined with constant, if cold, Inflation and a possibility recession On the horizon, many Americans are looking closer to their bottom line. The amount of money saved by depositors can be the difference between getting through tough economic times and relying on high-interest rate options like credit cards and personal loans.

That said, it’s not always clear how much you should be saving—and in how many accounts you should be saving your money. Is one enough or do you need one emergency fund, too? And they should be in one In a regular account or a high-yield? This is what we will discuss below.

Start by exploring high-yield savings accounts here to see how much more you can earn

How many savings accounts should you have?

As is usually the case with personal financial decisions, the answer to this question is specific to the individual. While one account is sufficient for many adults, others may find it beneficial to have multiple accounts. There is no specific number for each.

Ideally, you can have an account to save for short-term goals (think small home repair, vacations, etc.) and for another long-term goal (consider major home repairs, a wedding, or college tuition). But it also doesn’t hurt to prepare an emergency fund, especially in today’s economy. An emergency fund should have three to six months’ worth of savings, but it is not a set rule. Some experts recommend saving more.

For example, if you have an older car that will likely need to be fixed sooner rather than later, you may want to save more cash. Or if you have a career that feels like a higher-than-normal level of job insecurity, it might make sense to exceed that six-month threshold. It really depends on the individual service.

Make a realistic assessment of your financial situation. Would having multiple accounts make your budget better? It would be easier to save by having one Online Savings Account That you can’t access easily? Or is your current savings situation sufficient? No one knows the answer to these questions except you. That said, there are some notable ones Benefits of opening a high-yield savings account Now this can affect your thinking.

Explore your options here now to learn more

Why you should open a high-yield savings account now

Whether you’re happy with one savings account or three, now’s the time to turn your regular savings accounts into high-yield accounts. Just look at the interest rates to understand why both types of accounts are earning. The regular savings account rate currently stands at 0.40% per annum (as per FDIC) but Rates on high-yield accounts Rapidly higher – in the range of 4% to 5% or more, depending on which lender you choose.

Let’s put that in perspective. If you have $5,000 in a regular savings account, you can increase it to $5,020 after twelve months. But in a high-yield account, it would grow to $5,225 in the same time frame (at a rate of 4.50%). And that’s 4.50%! You may even be able to find an account with no fees or balance requirements at higher rates. So you basically lose money By not opening a high-yield account (or converting your existing account into one).

And it’s easy to get started. There are multiple high-yield savings accounts to choose from API, No fee And other features.

Start here now.

Bottom line

There is no standard number of savings accounts a person should have (although your bank may limit the amount you’re allowed to open). Some people may be best suited with a single account while others may find it easier to budget and save through a separate account for major expenses and a third to serve as a backup emergency fund. Regardless of the path you choose, strongly consider making an offer to one or more high-yield accounts. You won’t lose any of your policy but you could end up seeing your bottom line grow significantly, and that would be welcome news regardless of what’s happening in the broader economic environment.