Is it wise to open 2 savings account for fresh grad?

Hi anon,

I would totally recommend opening two savings account. It can help you to control your expenditure, especially if your second account acts as a emergency fund, and you open it with a bank that does not have that many ATMs for you to easily withdraw from (e.g. CIMB)

My own strategy as follows:

1. Salary comes into my OCBC 360, which I then transfer all to POSB except for a small incremental balance to trigger bonus interest. This OCBC 360 account is also acting as my warchest, as the money pile here has been growing over the years
2. POSB is used for day to day, GIRO, etc. With a buffer of 3 months liquidity, at the end of the month, I transfer everything in excess of 3 months liquidity to my POEMS account for higher interest.
3. Another portion sits in CIMB Fastsaver since ages ago, again, this is the emergency fund that's probably never going to be touched, it's around 18 months of expenses. It helps that the interest earned in CIMB Fastsaver is relatively high with no criteria to meet.

Hope that helps!

Economically there isn't any significant difference of course.

All the benefits are all pyschological -
E.g. having emergency money in another account makes you feel it isn't there (for day to day spending) - so you won't dip into emergency fund coz your day-to-day balance drops low...