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How to open multiple savings accounts

Having more than one savings accounts is a great way to manage your money and save for different goals.

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If you’re saving towards several financial goals, it can be challenging to organise all your finances in one savings account. To make things easier, you may find that the best option is to open multiple savings accounts; one for each of your savings goals.

You can consider opening savings accounts with different banks or find a bank that allows you to open more than one savings account. We take you through your options in this guide.

Compare savings accounts below that can help you save for multiple goals

Data updated regularly
Name Product Minimum Initial Deposit Fall below monthly fees Minimum annual interest rate Maximum annual interest rate
POSB SAYE Account
POSB SAYE Account
S$0
S$0
0.05% p.a.
0.2% p.a.
Unlock higher interest when you credit your salary, save a preset amount and make no withdrawals from this special savings account.
SC JumpStart Account
S$0
S$0
0%
1% p.a.
A day-to-day banking account with attractive interest rates and cashback on debit card spending for young adults Between 18 and 26 years old.
CIMB StarSaver (Savings)-i Account
CIMB StarSaver (Savings)-i Account
S$1,000
S$0
0.3% p.a.
0.3% p.a.
This Shariah-compliant savings account come with competitive profit rates and a wide range of banking features.
UOB Stash Account
UOB Stash Account
S$1,000
S$2
0.05% p.a.
1% p.a.
This simple, no-frills account offers competitive interest when you maintain or increase your monthly average balance.
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Compare up to 4 providers

Disclaimer: Interest rates are applicable for deposits between S$1,000 and S$49,999. Interest rate and initial deposit are shown in Singapore dollars. Please check with the provider for deposits and rates in other amounts and currencies.

Should you open multiple savings account with the same or different banks?

It’s entirely possible for you to open several savings accounts with the same financial institution as part of a plan to achieve your savings goals.

Not only does this provide a more effective way for you to manage your finances, but most banks will offer easy access with all your account balances on the one page so that you can keep track of your funds.

You’ll be able to see all your savings in one place within the mobile banking app, but having your money spread across multiple accounts can help you manage your budget better.

Bonus interest rates are typically awarded on one savings account only

However, you should be aware that this approach does have its drawbacks.

The biggest disadvantage is that it sometimes limits the amount of interest you are able to earn. If your savings account pays bonus interest whenever you meet certain requirements, such as depositing a certain amount each month or making minimal withdrawals, this bonus interest rate is typically only payable on one account per customer.

This means that if you open more than one account, only the first account will be able to earn the highest rate of interest – all other accounts will only earn a standard variable rate of interest, which could be as low as 0.05% p.a.

Since every bank provides varying offers, interest rates and requirements, you’d find it advantageous to open savings account at different banks to benefit from each of their interest rates and perks.

Unlike owning multiple accounts with the same bank, you’ll not be subject to limitations such as bonus interest cap. Also, it’s more secure to split your funds across different banks in the unfortunate event that one of them goes under.

Does the government guarantee still apply to all my savings accounts?

If your combined balance is below $75,000 then yes, it does. The Deposit Insurance (DI) Scheme insures your deposits for up to $75,000 per person, per institution. However, if your total balance is over $75,000 then you may want to consider putting the funds away in another bank.

All full banks and finance companies in Singapore are members of this scheme.

What are the benefits of having multiple savings accounts?

Here are some of the benefits that come with having multiple savings accounts:

  • Multiple saving goals. When you only have one savings account, you tend to prioritise just one of your savings goals. But with multiple savings accounts, it’ll be more convenient to set aside money for various savings goals. For instance, you could have one savings account for bills payments, one for your next overseas holiday, one for a new car and another to save up for your kids’ education.
  • Emergency funds. If you wish to set aside money for emergencies, it’d be best to create a separate account. This way, you wouldn’t accidentally dip into your emergency fund.
  • Circumvent withdrawal limits. There’s also a chance that you may need to make regular withdrawals from your savings, and if your account limits the number of withdrawals you can make each month, this may not be possible. If you have multiple savings accounts in your name, you can withdraw money from each account without exceeding any limits, which is a much more effective way to manage your finances.
  • Enjoy different account features. When you have multiple accounts, you can benefit from the different features they offer. For example, in addition to a high-interest savings account that doesn’t allow regular withdrawals, you may wish to open a separate savings account that still allows you to earn interest while also offering easier access to your funds

Are there any other disadvantages to having multiple savings accounts?

Regardless of whether you open multiple savings accounts across several financial institutions or with the same bank, there are several other potential disadvantages you should consider. These include:

  • It can get confusing. Although the aim of opening multiple accounts is to simplify your savings, the opposite can end up occurring. Keeping track of several accounts can be time-consuming and confusing, so make sure you can handle it before you adopt this approach. The last thing you want to do is lose track of any of your money.
  • Minimum balance requirements. If you spread your funds around across multiple accounts, you may struggle to meet the minimum balance requirements of some savings accounts. Similarly, if you open an account that offers tiered interest – a higher interest rate on higher balances – you could miss out on the maximum available rate by moving some of your funds into other accounts.
  • Extra fees. Opening more bank accounts means you are exposing yourself to the risk of paying extra fees. From ongoing fees to withdrawal fees and even charges that may apply if you fail to meet minimum balance requirements, these costs can quickly add up and eat into your savings.

How many savings accounts do I need?

The amount of savings accounts you need varies depending on your financial circumstances and goals.

If you have several short and long-term savings goals, and you’re having trouble managing them all with just one account, opening extra accounts can make it a whole lot easier. Similarly, if you receive income from multiple sources, you may find it easier to transfer the income from each source into a separate savings account and save towards specific goals.

On the flipside, having one savings account may not be a problem for you if you’re organised, able to prioritise your goals and can efficiently keep track of your savings progress.

But as long as you’re earning interest, building a savings balance and making progress towards your financial goals, it doesn’t matter how many accounts you have. Just remember to compare the interest rates, fees and features of several savings accounts before you open a new one.

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