How Many Savings Accounts Should I Have

Interested in having more than one savings account? Keep reading to learn more about the different options available.

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Adam Moelis
Feb 22, 2021
6 min read

You can never have enough money in your savings account. There’s no way to know when the next “rainy day” will come or how long it will last. The COVID-19 pandemic is an excellent example of a “rainy day” that lasted very long. 

The worldwide coronavirus pandemic wreaked absolute havoc on the savings accounts of millions of Americans. According to one poll, nearly 40 percent of people with emergency savings before March 2020 had to dip into those funds during the pandemic. 

Of these people, 73.3 percent said they had to use half of their savings. Years of hard work and sacrifice were instantly erased within just a few months.  

The best time to start building up your savings is yesterday, but the second best time is today. You probably already know that one of the first steps to saving money is opening a savings account. 

The benefits and security of a saving account make it the best method for saving money fast. But only having one savings account might mean missing out on a few solid opportunities and benefits. 

What Are the Best Types of Savings Accounts? 

  • Traditional savings account
  • High-yield savings account
  • Money market account
  • Certificate of deposit
  • Individual retirement account

All types of savings accounts have the same purpose of helping you save money. However, not all of them are created equally. You could miss many big-time benefits depending on where you’re saving money. 

Here is a list of the most common types of savings accounts and what they will offer you:

Traditional Savings Account

The bread and butter of every financial portfolio is the traditional savings account. These savings accounts are the most commonly used savings accounts by average Americans. A traditional savings account doesn’t come with much glitz or glamor. Just a safe place for you to save your money. 


  • It’s very easy to open a traditional savings account as they’re available at pretty much every major bank and credit union. 
  • Unlike a checking account, you’ll receive an interest rate to help grow your savings. 
  • It’s fairly easy to transfer or withdraw money from a traditional savings account when needed. 


  • The interest rates on most traditional savings accounts are meager and only amount to a few dollars a year.
  • Most savings accounts come with monthly maintenance fees that could cancel out interest earnings when applied.  
  • There are often limits to how many withdrawals you can make each month before inducing a penalty.

High Yield Savings Account

High-yield savings accounts operate the same way as traditional ones, except they have a higher yield. These savings accounts are less commonly available at brick-and-mortar banks, but you can easily find them online. These savings accounts are much more preferred than traditional ones as they will usually help your money grow faster. 


  • The average interest rate will be much higher than a traditional savings account. 
  • It’s fairly rare for high-yield savings accounts to charge monthly usage or maintenance fees. 
  • There are normally much lower minimum deposit and balance requirements for these savings accounts. 


  • Online-only banks don’t have physical branches where you can deposit/withdraw money, ask questions, or open new accounts.
  • Transferring money between online accounts will usually take a few days to complete.
  • Depending on the bank, there might be restrictions on ATM access and features.

Money Market Account

A money market account is a hybrid between checking and savings accounts. You can find these accounts in banks, credit unions, and online. Money market accounts combine the best features of a checking account (easy access to your money and the ability to use a debit card/write checks) with the best features of a savings account (the ability to earn interest payments).


  • The interest rate of a money market account is typically above that of a traditional savings account.
  • You can use your account just like a checking account and easily access your money.
  • These accounts are easy to open and found anywhere that offers checking and savings accounts. 


  • The interest rates don’t typically reach those of a high-yield savings account. 
  • It’s fairly common for banks to charge a monthly fee to maintain a money market account.
  • You usually need a much higher minimum deposit to open one.

Certificate of Deposit

A certificate of deposit (CD) is like putting your money in a time capsule. After you deposit the money, you’ll have to wait for a specified amount of time before you can access it. The waiting isn’t for nothing, though, as it will accrue the interest the entire time. 

The term lengths of a CD can vary significantly and typically range from 30 days to 60 months. In most cases, the longer the term you agree to, the higher an interest rate you’ll receive. 


  • The interest rates of CDs are typically equal to or higher than most other types of savings accounts.
  • It’s uncommon for banks to charge any monthly maintenance fees when you open a CD account.
  • Many CDs are available to open with very low opening deposit requirements.


  • You won’t be able to access your money as quickly as some of the other options on this list.
  • Withdrawing any money from a CD before it has matured will come with severe penalties. 
  • The interest rates of CDs are locked in, so you could be stuck with a lower than average rate for a long time.

Individual Retirement Account

An individual retirement account (IRA) is most commonly used for long-term savings to prepare for retirement. The interest rates on these accounts are way higher than the other options on this list. 

They are so high that you are only permitted to contribute $6,000 a year. While these savings accounts will grow much better than all other types, the money is locked in, and you can’t access it until after you are 59 and ½ years old. 


  • The interest rate is much higher than any other savings account option.
  • Any yearly contributions that you make are tax deductible.
  • IRA contributions are bankruptcy protected, so creditors can’t seize them. 


  • You can only contribute a maximum of $6,000 annually or $7,000 if you are over 50.
  • Withdrawing any early money from your IRA will result in severe financial penalties. 
  • You will have to pay income taxes on your balance whenever you withdraw it.

How Many Savings Accounts Should I Open?

There is no limit to how many savings accounts you open. You can open up as many savings accounts as you would like. The exact number will largely depend on your short-term and long-term financial goals. For instance, if you are saving up to take a vacation next summer, then you should create separate savings account for only that purpose.

The best way to figure out how many savings accounts you need is to consider why you’re saving money. It’s always good to have a general savings account, but it’s much more effective when saving with a purpose. At the very least, you should have three different savings accounts:

  • Emergency savings account that you can use to cover at least three to six months' worth of essential living expenses. An emergency fund to cover monthly costs can help you get back on your feet in a medical emergency, losing your job, or serious car/home repairs.
  • Short-term savings account that you intend to use within the next year or so. These funds might be used for a vacation or Christmas gifts, electronics upgrades, or other non-essential purchases.
  • Long-term savings account that you don’t intend to touch for a very long time. You’re never too young to start planning for retirement, and this type of account would provide you with a comfortable landing for when you retire.

What Are the Benefits of Having Multiple Savings Accounts?

  • It’s easier to track your progress
  • You can get higher interest rates
  • It’s harder to overspend

Opening several savings accounts might sound like a hassle, but a few advantages can come. Here are some of the best reasons to open multiple savings accounts:

It’s Easier To Track Your Progress

Opening multiple savings accounts will make tracking progress on your specific saving goals much easier. While a single online savings account might yield a higher balance, none of that money has a purpose. 

You wouldn’t be able to tell if you can afford a new laptop yet, because your emergency savings and retirement money would be mixed in as one lump sum.

You Can Get Higher Interest Rates

The interest rates offered by banks and other financial institutions are always changing. Each goal is to convince you to deposit your money in their vault instead of the competition’s vault.

You can take advantage of their desire to one-up one another by opening accounts with several banks to reach your different savings goals quicker. As the rates change, you can shift your money to the one with the highest yield and cash.

It’s Harder To Overspend

Your savings tend to burn a hole in your bank account like cash can burn a hole in your pocket. It’s very tempting to overspend on a purchase when you have one savings account that contains a huge lump sum.

The temptation and convenience to spend your hard-saved money make it difficult to refrain. Spreading your money into several accounts makes it much more difficult to impulsively spend, which makes it a good idea for your finances.

What Are the Downsides to Having Multiple Savings Accounts?

  • You might lose track
  • You could pay fees
  • You can miss out on interest payments

As with everything in life, there are a few potential downsides to opening up several savings accounts. These are a few of the issues that might you might encounter when you have multiple savings accounts:

You Might Lose Track

The more fishing poles you have set up on a shore, the harder it can be to keep an eye on them. The same is true with your various savings accounts. It will take quite a bit of organization and record keeping to monitor the balances of all your accounts.

You’re especially likely to encounter issues if each account is in a different bank. To stay on top of your progress, you’ll need to download several apps and remember to check in often.

You Could Pay Some Fees

Most banks like to hide the potential for fees in the fine print when you open a savings account. One problem with maintaining several open savings accounts is that it can be difficult to maintain the minimum balance requirements for all of them. You could quickly rack up several fees if you don’t have enough in your account.

Another potential issue is that banks prefer for your account to be active. Some savings account options require a certain monthly deposit amount, or a fee is tacked on. 

Lastly, some accounts come with a set number of withdrawals each month. If you constantly transfer your money around your various accounts, you could incur a penalty and exceed the limit.

You Can Miss Out on Interest Payments

The greatest benefit of a savings account is that it pays you interest for keeping your money deposited. You can make money by not spending any. The problem with having multiple accounts is that you might miss out on a higher overall interest payment.

Let’s say that you have $1,000 deposited in five different accounts. If one of these accounts has a four percent rate, you would only make about $40 annually in interest. However, if all of your savings were in that account, the interest payment would be $200 instead.

Why Should I Save With Yotta?

There are many options for saving your money, but none can offer the same benefits as Yotta. The interest rates that most traditional banks offer will only net you a few extra cents each year. By using Yotta, you can easily beat that total within a week.

The reason that Yotta is special is simple. You'll get one ticket for every $25 in your savings account. Each ticket has a total of seven numbers. Starting on Monday night, one new number will be drawn. A sum of seven numbers will be drawn by Sunday night. Depending on how many numbers match your tickets, you could win various cash prizes and gifts.

Matching just a few numbers can get you between 10 cents and $7 per ticket. That’s more than enough to surpass the average interest payments you’ll receive in a year with a traditional savings account. The prizes get interesting when you match at least five of the numbers on one ticket. 

Depending on the combination, you could win $2,500, $3,000, $10,000, a Tesla Model 3, or $10,000,000. You won’t find an annual interest rate that pays more than $10 million anywhere on this planet.

The best thing about these benefits is that they are completely free. You don’t have to pay any fees for joining or any fees for monthly maintenance, and the tickets are given out free of charge. 

You’ll be allowed to play the lottery every week for free, and the number of tickets you have is based on how much money you save. You’ll be hard-pressed to find a saving program that offers better incentives than that.

Spread Your Savings Around To Enjoy All the Benefits

There is no set number of savings accounts that everyone should open. While avoiding carrying “all of your eggs in one basket is typically a good idea,” you’ll have to decide what’s most comfortable for you.

There’s no harm in having several savings accounts active at one time or focusing all of your attention on just one. The most important thing you need to be on the lookout for is the benefits you’re getting from your account?

With Yotta, you’ll enjoy unmatched benefits from any other bank or financial institution. Why settle for interest payments that only equal pennies on the dollar when you can be given a chance to become a millionaire instead?

Open your Yotta savings account today and make your first deposit so that you can join in next week’s sweepstakes. The opportunity to win the $10 million jackpot is as good an incentive to save as you’ll ever have.

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