For many in Singapore, a single savings account keeps things straightforward, and it meets their needs perfectly. Yet, you might be wondering, "Should I have more than one savings account?" or "If yes, how many savings accounts should I have?" 

Think of your money like this: While one container might hold everything, using several can help you manage different items more efficiently. You could have one savings account for daily savings, another dedicated to that long-awaited holiday, and perhaps one specifically for unexpected costs. 

Thanks to the variety of savings accounts now offered in Singapore, from your local bank to online platforms, organising your finances this way is simpler than ever. The decision of whether to have more than one savings account hinges on your preferred way of managing money and your individual savings objectives.

There are several specific scenarios where having more than one savings account can be advantageous:

• Keep your emergency fund separate: It's wise to keep your emergency fund in a distinct and easily accessible account. This isolates crucial funds from the rest of your money, making you less tempted to use them for non-emergency expenses such as a spontaneous shopping spree.

• Specific savings goals: Having separate accounts for different savings goals – be it a HDB down payment, wedding, education, or travel – helps you track progress visually and could unlock better interest rates for each timeline. 

• Optimising interest rates: High-yield savings accounts offer diverse interest structures (such as base rates, promotions, and tiers). By spreading your savings across a few accounts, you could maximise your overall interest earnings.

• Managing joint finances: For couples or families who share bills and costs, having separate bank accounts just for those shared expenses can make budgeting much easier. It also makes it clear who's putting in what and where the money is going for things you all pay for together.

• Keeping money separate: If you have different bank accounts for different things, it can be a really helpful way to manage your budget and see where your money is going. For example, you could have one for household bills, another for upcoming holidays, and one for your investments. 

Effectively managing multiple savings accounts requires a bit of organisation. Here are some practical tips:

• Utilise apps: Many popular expense tracking and budgeting apps offer features that allow you to connect them to all your bank accounts, so you see all your money in one place. Some also come with saving targets features which show you how much more you need to save to reach your goals.

• Check your money often: Get into the habit of looking at how much money you have in each of your savings accounts, maybe once a week or month. This helps you know where your money is and if you're on track with your savings.

• Label accounts clearly: When you open your accounts, especially the ones you see online, give them simple names that tell you what they're for. For example, "Rainy Day Fund," "House Money," or "Trip Savings." This makes it super easy to see where each pot of money is.

• Too many accounts? Combine some: If you find it hard to keep track of too many accounts, think about consolidating several into a single one. But only do this if it still helps you reach your goals.

• Be mindful of fees: Most savings accounts in Singapore don't charge many fees, if any. Still, be aware of those which do. For instance, some accounts might charge you if you don't meet minimum balance requirements. Banks all have their own rules, so read the details when you open an account so you don't get hit by any unexpected costs.

>> Ready to learn more? Read about types of savings accounts

While basic savings accounts are a common starting point, Singapore offers many other types of savings accounts that might serve specific financial needs:

>> Learn more about the Deposit Insurance (DI) Scheme from the Singapore Deposit Insurance Corporation (SDIC)

• High-yield savings accounts: As mentioned earlier, these accounts typically offer tiered interest structures, where the interest rate you earn may increase based on your account balance. They might also have conditions such as requiring salary crediting or a certain level of monthly spending to qualify for the higher interest tiers.

• Bonus savings accounts: Some banks in Singapore offer bonus savings accounts that provide extra interest for meeting specific criteria, such as increasing your account balance each month or making a certain number of transactions with a linked debit card.

• Fixed deposit accounts: These accounts offer a typically higher interest rate compared to regular savings accounts in exchange for locking in your funds for a specific period (e.g., 3 months, 1 year). Early withdrawal usually incurs penalties.

• CPF Special Account (SA) and Retirement Account (RA): While primarily designed for retirement savings, the CPF SA and RA offer a savings component with potentially higher returns than regular bank savings accounts. Although withdrawals are restricted, they can play a crucial role in your long-term financial planning.

• Money market funds (MMFs): These are low-risk, relatively liquid investment options that can serve as a place to park short-term savings. They typically offer slightly higher returns than traditional savings accounts, although returns are not guaranteed. MMFs are generally accessible to retail investors in Singapore through various platforms.

>> What are high-yield savings accounts? Find out more here.