BENGALURU: Working professionals do have multiple bank accounts in order to facilitate their complex lifestyles and needs. This could also mean that they were working for multiple companies in a span of 5-6 years or they have their savings account in more than one bank. So, how you handle your savings can depend greatly upon your financial habits. More accounts also mean more maintenance fees and more potential for inactivity fees or overdraft fees, according to bankrate.com.

Let’s analyze some pros and cons to this approach

Reasons to Have Multiple Savings Accounts:

1. You Will Have Multiple Savings Goal

The main reason you will open a savings account is to ensure that you have the flow of money when you need it and also to track exactly how much you have saved toward each individual if you have opened an account in multiple names. By doing so, you will ensure that you are reaching your goal of saving money that may be of need in an emergency.

2. Divide Your Savings

You may have to divide your savings account if you need it in an emergency. For Example, keeping the money in an ‘Emergency Fund’, and then storing the remainder of your funds in accounts tied to various short and long term targets. This can ensure that the amount you are saving will be available to you when you need it the most.

Read More: Tax Payment Made Easier, ITR Introduces News Forms

E-finance Firms In The Process To Make Loan Approvals Easier