How many savings accounts should one have? and should the accounts be concentrated in one bank or multiple different banks?

Hi Anon,

I think for short term savings, the banks will work cause they provide you the best liquidity. But in regards to long term savings there are many possible instruments for you to get the best possible returns.

How long a horizon are you looking at for your long term savings?

I have 4 accounts, 1 for salary crediting (plus war chest), 1 for emergency funds, and 1 for day to day spending, and 1 joint account with my wife.

It's ok to have less or more accounts, but make sure you can keep track of them, and their purpose.

It is good to have 4 different account spread across different banks. This is because the SDIC assures up to $75,000 on each bank deposit. I would categories the accounts as savings, spending, investment and emergency fund. Hope it helps.

If you want to earn higher interest for savings account, concentrated in one bank will give higher interest.

I have 4 banking accounts: salary, savings, emergency and spending.