dailystarx

News and Magazine


Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

  • Saving for separate goals helps you track your progress and manage your money.
  • You can save for different objectives with a high-yield savings account.
  • Some of these accounts may also offer high interest rates and low minimum opening deposits.

Saving for different expenses can make it easier to manage your money than keeping all your savings in the same place. There are several savings accounts that let you save for separate goals and name each of them, like “Emergency Savings” or “Car Fund.”

Take a look at these savings accounts and consider which one is the best fit.

Banks that make it easy to save for different goals

1. Ally High Yield Savings

Ally High Yield Savings Account


Annual Percentage Yield (APY)

2.25% APY


Minimum Deposit Amount

$0

Ally Ally High Yield Savings Account

Ally High Yield Savings Account


Annual Percentage Yield (APY)

2.25% APY


Minimum Deposit Amount

$0


Annual Percentage Yield (APY)

2.25% APY


Minimum Deposit Amount

$0

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

2. Betterment Cash Reserve

Betterment Betterment Cash Reserve Account

Betterment Cash Reserve Account


Annual Percentage Yield (APY)

2.25% APY


Minimum Deposit Amount

$10

Betterment Betterment Cash Reserve Account

Betterment Cash Reserve Account


Annual Percentage Yield (APY)

2.25% APY


Minimum Deposit Amount

$10


Annual Percentage Yield (APY)

2.25% APY


Minimum Deposit Amount

$10

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

3. Capital One 360 Performance Savings

Capital One Capital One 360 Performance Savings™

Capital One 360 Performance Savings™


Annual Percentage Yield (APY)

2.20% APY


Minimum Deposit Amount

$0

Capital One Capital One 360 Performance Savings™

Capital One 360 Performance Savings™


Annual Percentage Yield (APY)

2.20% APY


Minimum Deposit Amount

$0


Annual Percentage Yield (APY)

2.20% APY


Minimum Deposit Amount

$0

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

4. Navy Federal Share Savings

Navy Federal Credit Union Navy Federal Credit Union Share Savings Account

Navy Federal Credit Union Share Savings Account


Annual Percentage Yield (APY)

0.25% APY


Minimum Deposit Amount

$5

Navy Federal Credit Union Navy Federal Credit Union Share Savings Account

Navy Federal Credit Union Share Savings Account


Annual Percentage Yield (APY)

0.25% APY


Minimum Deposit Amount

$5

On Navy Federal Credit Union’s website


Annual Percentage Yield (APY)

0.25% APY


Minimum Deposit Amount

$5

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Note: This is the only account on our list that doesn’t let you set up separate goals in one account. You’ll have to create multiple savings accounts and name each one. But because Navy Federal doesn’t charge monthly service fees, there isn’t really a downside to doing it this way.

5. Sallie Mae SmartyPig Account

Sallie Mae Sallie Mae SmartyPig Account

Sallie Mae SmartyPig Account


Annual Percentage Yield (APY)

2.40% to 2.50% APY


Minimum Deposit Amount

$0

Sallie Mae Sallie Mae SmartyPig Account

Sallie Mae SmartyPig Account


Annual Percentage Yield (APY)

2.40% to 2.50% APY


Minimum Deposit Amount

$0


Annual Percentage Yield (APY)

2.40% to 2.50% APY


Minimum Deposit Amount

$0

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

6. Wealthfront Cash Account

Wealthfront Wealthfront Cash Account


Annual Percentage Yield (APY)

2.55%


Minimum Deposit Amount

$1

Wealthfront Wealthfront Cash Account


Annual Percentage Yield (APY)

2.55%


Minimum Deposit Amount

$1


Annual Percentage Yield (APY)

2.55%


Minimum Deposit Amount

$1

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

How many savings accounts should I have?

There’s no right or wrong answer. It depends on how many purchases you want to save for. 

Keep in mind, the Navy Federal Credit Union Share Savings Account is the only account on our list that actually requires you to create a separate account for each goal. The others let you name goals in one savings account.

Here are some savings goals you could work toward with these accounts:

Featured credit cards from our partners

Regular APR

18.24% – 25.24% Variable

Credit Score

Good to Excellent

Regular APR

18.24% – 25.24% Variable

Credit Score

Good to Excellent

Regular APR

17.24% – 25.99% Variable

Credit Score

Good to Excellent

What are the benefits of saving for separate goals?

So, why not just keep all your savings in one account and withdraw money when you need it? You can do this, but there are some perks to having separate pots for each savings goal:

  • Easily track your progress. With one savings account, you may see that you have $15,000 in savings. But with separate goals, you can see that you have $10,000 in an emergency fund, $3,000 saved for a car, and $1,000 set aside for that big trip next month. If you need $5,000 to buy a car and $1,500 for the trip, you now have a better understanding of how much more you need to save.
  • Save more. Once you have a better idea of how close you are to reaching each savings goal, you may feel motivated to save more so you can reach a certain dollar amount. Transfer some money from checking, or set recurring automatic transfers to go toward goals.
  • Reduce temptation. Keeping all your savings in the same place makes it easy to misspend money. For example, maybe you were planning to use your savings both to buy a car and go on a big trip next month. You go on vacation, but when you return, you realize you don’t have enough money left over to buy the car. Setting separate goals can help you remember not to touch the money you want to put toward the car.

All of these savings accounts are useful tools for saving for different goals. Take a look at their other features — interest rates, minimum opening deposits, options for depositing money — to decide which one is right for you.



Source link

Leave a Reply

Your email address will not be published.