Multiple Savings Account: Benefits, Eligibility & Characteristics
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  • Personal
  • Business
  • Corporate
  • Private Banking
  • Privy League
  • NRI Services
  • Investors

In personal finance, the saying "Don't keep all your money in one place" is important. While regular Savings Accounts have been a reliable way to save money, people realise it's good to spread their savings across different accounts, not just investments. This has made the idea of having multiple Savings Accounts more popular recently.

Multiple Savings Accounts involve the creation of multiple accounts in one bank or across multiple banks, with each account dedicated to a certain financial goal. You may be wondering: Can I have Multiple Savings Accounts or not? The answer is 'Yes,' you can. But the biggest question is, what are their benefits and the eligibility criteria? How can you effectively manage several accounts at one time? Well, read this article to get answers to all these questions.

What are the Benefits of Multiple Savings Accounts?

Having multiple Savings Accounts can be a strategic move when managing your finances. These specialised accounts offer several advantages. Some of them are:

1. Better Financial Organisation

Having multiple Savings Accounts helps you keep your money neatly sorted. You can allocate money for your rent, groceries, or savings goals into separate accounts. This makes it easier to see where your money is going and stay organised.

2. Emergency Fund Security

An emergency fund is a safety net for unexpected expenses. Having a separate account for emergencies can eliminate the chances of accidentally spending it on other things.

3. Interest Maximisation

Some Savings Accounts pay more interest than others. You can earn more interest by spreading your savings across different accounts.

4. Reduced Dependency on One Bank

Today, banks rely heavily on technology, so they undergo maintenance services to update and secure their data. There are also instances of server-related issues that can take hours to resolve. Accessing your account or making urgent payments can be difficult in such scenarios. Multiple accounts can help you avoid such issues.

What are the Eligibility Criteria for Open Multiple Savings Accounts?

There are no explicit eligibility conditions for opening multiple Savings Accounts. You can open as many bank accounts as you want. Instead, you must fulfil the eligibility requirements established by the bank where you wish to create each account. This usually includes:

  • Age: You must be at least 18 years old. If you are a minor, your account will be managed by a guardian or parent.
  • Citizenship: You must be a citizen of India or an NRI.
  • KYC Compliance: You must adhere to the KYC guidelines of the Reserve Bank of India.

How do you manage Multiple Bank Accounts?

Managing several bank accounts may appear difficult, but with a systematic approach, you can manage these accounts easily. Here are some pointers to help you handle several bank accounts effectively:

1. Set Clear Financial Goals

You must establish different financial goals for each account, such as emergency savings, investment, or day-to-day expenses. This will help you manage your bank accounts more effectively.

2. Organise Account Information

You must keep complete records of each account, including account numbers, balances, and due dates at once place. You can use a spreadsheet or financial software to keep this information organised.

3. Monitor Account Activity

You must review your bank statements and transaction history regularly to find any inconsistencies or unauthorised transactions early.

Also Read: How to Open an Online Savings Account

The Pros and Cons of Having Multiple Bank Accounts

Multiple bank accounts can offer various advantages and disadvantages, depending on your financial goals and how you manage them.

The Pros of having multiple bank accounts are:

1. Reach Your Financial Goals

Multiple Savings Accounts can help you reach your financial goals due to the segregation of the finances. This ensures the savings in a particular account go toward it and not for something else. 

2. Risk Mitigation

Diversifying your accounts among several banks might lessen the chance of losing access to your cash due to a bank's technical problems or an account freeze. It serves as a safety net in the event of unanticipated occurrences.

3. Get Better Benefits

Setting up separate accounts across various banks can help you channel the best benefits of each bank. One account may help you get better interest, while the other may charge a lower maintenance fee. This way, you can leverage all the benefits at one time.

The Cons of having multiple bank accounts are:

1. Account Management Complexity

Having multiple accounts means keeping track of various balances, fees, and transactions. It can become overwhelming and confusing.

2. Potential Fees

Some banks charge maintenance fees for each account. Maintaining several accounts could result in higher fees, decreasing your overall savings.

3. Interest Loss

If you spread your savings across multiple accounts, you might miss out on higher interest rates by keeping your money in a single high-yield account. This could impact your long-term savings growth.


Multiple saving accounts are a game-changer if you have a clear idea about your finances and well-laid future goals. This is because, without clear financial goals, these accounts will only add to your monthly banking finances and increase the complexity. Additionally, before opening multiple Savings Accounts, you must carefully analyse your requirements and check the charges and benefits across the various banks before opening an account with a bank.

Also Read: Understanding Auto Sweep Facility for Savings Account

FAQs about Multiple Savings Accounts

Q1. Can I open two Savings Accounts in the same bank?

Yes, you can open two Savings Accounts in the same bank. Many banks allow multiple accounts. But, you must check with your specific bank for their policies and the number of accounts you can open in their bank.

Q2. How many Savings Bank Accounts can a person have in India?

There is no limit to the number of savings bank accounts that a person can have in India. An Indian citizen may open as many bank accounts as they wish.

Q3. Is it better to have one Savings Account or Multiple?

A single Savings Account is easier to manage, but multiple accounts allow the segregation of different financial goals and budgeting options.

Q4. How do Multiple Accounts help save money?

Having multiple Savings Accounts can make it easier to save money for different things like emergencies, vacations, or investing. It also reduces the temptation of using the money marked for other purposes. This helps you plan your finances better and reach your goals.

Q5. Can I get a 5 to 6 Savings Account?

Yes, depending on the bank's policies and financial needs, you can generally have 5 to 6 Savings Accounts or even more.

Q6. Can the Same PAN Card be Used to Open Multiple Bank Accounts?

Multiple bank accounts can be opened using the same Permanent Account Number (PAN) Card.

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