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Multiple Savings Accounts: Are They Really Necessary?

How many bank accounts should I have? SoFi professionals say, “Your family life or career might also dictate it.” Having multiple savings accounts is a good way to stay organized and on track with your money, but it’s optional for everyone. Here’s how you can decide if you should open an additional account or not:

Vacation Fund

An emergency fund is a money you would use if your car breaks down, you have to pay for unexpected medical expenses, or you lose your job. It’s a safety net meant to keep you from going into debt when life throws a curveball. The best way to handle this is to set up an automatic monthly deposit into your savings account, so it’s out of sight and out of mind. You should aim for at least three months’ worth of living expenses—though some experts recommend six months or more if there are children in the house.

Emergency Fund

If you’ve ever been to the ER or spent a night in jail, you already know that bad things can happen anytime. So it’s important to have a separate savings account earmarked specifically for emergencies so that when they do occur, you’ll be able to pay for them without having to dip into your general savings or ask friends and family for help.

Retirement Fund

The Retirement Fund is a great place to start if you’re just starting out. This account can be opened at any time, and it’s designed for long-term savings that will continue growing over time. The sooner you start saving, the more time your money has to grow before you need to withdraw it in retirement.


The money you save each month should be based on how much you can afford and how old you are (the older you get, the less you have left). If saving isn’t an option right now because of other financial obligations such as debt, then don’t sweat it: Saving later will make all of this easier!

Gifts and Holidays Fund

This is the place for all of the gifts you’ll be given—birthdays, holidays, and other special occasions. You can keep it separate from the “fun money” or not—it’s up to you. The point of this savings account is to have a stash of cash available when friends or family ask what they should buy you.

Wedding Fund

A wedding fund is a good idea for any couple getting married. You need to save for the big day but also for all of the other things that come with it—the honeymoon, a home together, and even your wedding dress! Yes, you’ll want to put money aside for this one.


It’s a good idea to have multiple savings accounts for different reasons. You can create an account for each one or group similar ones together in one place, so you don’t have to worry about ensuring everything is in order. Either way works, though they recommend starting small and working your way up until you get comfortable with the process!

Brett Shapiro
Brett Shapiro
Brett Shapiro is a co-owner of GovDocFiling. He had an entrepreneurial spirit since he was young. He started GovDocFiling, a simple resource center that takes care of the mundane, yet critical, formation documentation for any new business entity.

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