Having multiple bank accounts can help people keep spending and saving separate, making it easier to keep track of and keep their finances healthy. In fact, having different accounts can improve your overall savings and investment strategy.
In addition, the digital age has brought online accounts to the playing field, which not only allow savings to be saved in a separate account - which is isolated from daily expenses - but are also easy to open, have no requirements and do not charge commissions.
But how many bank accounts is it wise to have? The experts of the financial comparator HelpMyCash.com answer: “It depends on each one. But at least two accounts is the basics. It is the best way to manage money. Let's say it's like dividing capital into different buckets, each with its own purpose, "they explain.
If you can't fathom the idea of having a multitude of bank accounts, or maybe you just want to do it a little at a time, one way to start is with two accounts. The idea is to separate necessary expenses from savings. In this way, you can limit spending and control your budget more to avoid wasting money on superfluous things.
"With this type of strategy, a person can put their fixed-expense money into one account and make sure they have enough to pay their monthly bills, while the rest of the money goes into a second account where they save for their emergency mattress, for a trip or for the entrance of a flat", they detail from HelpMyCash.com
One option is to open the second account in an online bank, an easy and quick way to have another account. "One of the favorite online entities of the Spanish is ING, whose current account, although it is called the ING Payroll Account, does not require direct debiting a payroll and is completely free whether or not you have a fixed monthly income," they explain.
If you live as a couple, it can sometimes be difficult to decide whether finances should be combined or kept separate. There are several options. The first can be to keep everything totally combined, the second to have everything completely separate or you can get somewhere in between.
"There isn't just one way to keep track of accounts. But perhaps a useful solution for many couples is to employ what we'll call 'yours, mine, and ours.' as well as another for his savings and, on the other hand, he maintains a joint account for common expenses: flat rent or monthly mortgage payment, payment of services, supermarket...".
The market offers many accounts that allow multiple owners, but there is one that allows up to five co-owners, it is the Openbank current account. In addition, it has no maintenance or administration costs and has offers in restaurants, leisure and clothing. "This account can also serve those who share a flat with friends," they point out.
If you're up for something a little more complex, but still manageable, you can consider using the four accounts strategy. With this setup, you will have separate accounts as follows: Essentials, Lifestyle, Savings, and Goal Savings.
The essentials are basically the monthly expenses that do not change, such as rent or mortgage, car payments, insurance, water bill, electricity, supermarket, etc. "Keep your first checking account just for monthly expenses, and be sure to monitor your balance to meet those expenses," experts recommend.
This account should not be used for anything else. Anything that isn't a regular monthly expense goes into the lifestyle account.
The lifestyle account covers everything that is not a regular monthly expense. Therefore, these expenses will be more variable and are sometimes called entertainment or fun expenses. "Use it to finance weekend entertainment and restaurant meals or pilates classes. As this account is mainly for spending, the ideal will be to have one that includes a free and commission-free debit card," they add from HelpMyCash. com.
If it is a question of recommending an account that serves to indulge, the Spanish market offers several alternatives. Neobanks like Revolut or N26 offer free accounts with debit cards and benefits such as free money abroad.
“One of the most popular among young people is Revolut. Your standard account allows you to withdraw up to 200 euros per month from any ATM without paying a commission. In addition, it has the interbank exchange rate and up to 10% discount on accommodation if the stay is reserved through its application”, they list.
In the case of N26, your standard account allows you to make three free withdrawals per month at any ATM in the euro zone. According to the plan, the client will be able to count on medical coverage of up to one million euros for the owner, the partner and the children. Of course, in order to qualify for coverage it is a requirement to have paid for the transport tickets with the card.
While it might be tempting to put all the money that isn't in your essential spending account into your lifestyle account, it's also important to have a savings account. In fact, with this strategy it is promoted to have two savings accounts, in which the first is for long-term savings or for emergencies and the second for the short term.
"This money should only be touched in case of unexpected emergencies, such as job loss or health emergency, this account is not for entertainment purposes," they point out.
If the first savings account is to cover the expenses of an emergency, the second should be to save for a specific objective. "In this account you will have the money saved for personal purposes such as buying a car, taking a trip or paying for your wedding," the specialists explain.
"Today you don't need a separate account to save for goals, most banks have tools called piggy banks, with which customers can choose the savings method that best suits them to achieve their personal goals and make track your goal.
BBVA, like almost all entities, offers its customers the possibility of creating personalized piggy banks to be able to save easily and simply. “BBVA's Account Goals service allows you to create up to five different goals to separate savings and organize them according to objectives. Money can be transferred to the piggy banks from the current account and, in addition, automatic savings rules can be created. In addition, it is a free functionality that allows you to withdraw money instantly without any penalty”, they clarify from HelpMyCash.com