How many savings accounts can I have?

With loads of savings accounts out there, you may be pleased to learn you’re not limited to just having one or two. You can open as many as you like and save in a way that suits you. We’ll give you some tips here, so you can work out how to best manage your money, no matter what you’re saving for.

The beauty of having multiple savings accounts is that it gives you the opportunity to find interest rates and terms that suit your needs. Some banks and building societies also offer bonus rates for new customers, so by switching accounts you could boost the interest you're making.

Organising financial goals

A big advantage is that you can use different accounts for different goals. If you’re setting up an emergency fund, saving for your summer holiday or getting cash together to buy a car, then you can have different pots of money set aside earning interest.

This can help you be more disciplined about saving, as you’ll be able to see exactly how close you are to hitting your targets. It also takes away some of the temptation to spend on other things, as you’ll have to actively withdraw that money from a separate account.

There’s no universal answer to this, it really depends on how many things you’re saving for, and how you want to manage your money.

If you're saving for multiple things, having a different savings account for each one may make it easier to see how you're getting on. But that's not the only way to do it.

Each goal doesn’t necessarily have to have its own account though, you may be more comfortable with fewer savings accounts and taking cash out for your different goals when you reach them. In this case you may just want an account to cover emergencies and one that’s higher interest for your longer-term savings.

Another thing to bear in mind is whether an account is protected by the Financial Services Compensation Scheme (FSCS). This covers your savings up to £85,000 per banking group, so if you're saving more than that you'll want to spread your money around to make sure it's protected.

Here are a few things you should look out for when you’re choosing a savings account.

Interest rates

Different accounts offer different rates of interest. The amount you earn can either be variable, so it can change while you hold the account, or fixed, where you earn a set amount of interest for a fixed period, for example 12 months. Easy access accounts generally offer lower interest, as you can take out your cash anytime. Notice accounts (where you can't withdraw your money for a certain number or days) or fixed-term accounts, (where your money is locked away for the length of the savings tem) offer higher interest if you're fine with less access to your cash. You should make sure that the account you choose meets your needs, both in terms of your interest and how long you're looking to save for.

Bank terms

Some accounts may have penalties if you want to withdraw your money early or even have regular charges for holding the account. Some accounts also have minimum deposit amounts. It’s best to check for these before you open any accounts.

High interest savings accounts are ideal if you’re looking to grow your money without the added risk of investing your money in things like stocks and shares.

Over time, you’ll get to benefit from compound interest as the interest you’ll earn will snowball, getting bigger each time it’s added to your savings. This makes them useful for medium to long-term goals like building an emergency fund or saving for a big purchase. You can also find easy access high interest accounts which can be useful if you need money for things in the short term, like unexpected bills.

You can find the best high interest accounts by using comparison sites. Things to look out for are introductory interest rates that could drop and that any accounts you use are protected by the FSCS guarantee.

If you're opening multiple savings accounts there are a few things you can do to manage any savings accounts you have.

Track your savings

Some budgeting apps will let you track the amounts you have in savings and bank accounts, so you have the full picture of your finances. With it all laid out you can see how much progress you’re making towards your different goals.

Set up automatic transfers

By transferring money to different accounts each month, you don’t have to worry about missing payments or forgetting one of your accounts. You can time your transfers so that they go out just after you get paid. Then you’ll know how much money you have left in your budget for the rest of the month.

Name your accounts

To avoid making deposits to the wrong account, especially if they could end up locked away in a fixed term account, make sure you label them clearly in your bank transfer details, e.g. “Holiday Savings”, “Emergency Fund”.

Keep track of rates

With savings rates going up and down, you want to make sure that an account that was offering you a decent rate is still a good deal – especially if it had a bonus that might have run out. Don’t get caught out, keep an eye on what’s out there for your money, and be ready to move it.

Aviva Save has a marketplace full of FSCS-protected savings accounts all with competitive rates of interest. You can access them with one secure account, making it easy to switch.