multiple-saving-accounts

Can I open multiple savings accounts with the same bank?

Information verified correct on December 8th, 2016

You can open multiple savings accounts with one bank, but read the fine print before you do.

If you’re saving towards several financial goals, sometimes it can be a little difficult to organise your finances in just one savings account. To make things easier, you may find that the best option is to open multiple savings accounts - one for each of your savings goals.

But can you open more than one savings account with the same bank, or will you need to open accounts at separate financial institutions? You can open multiple savings accounts at the one bank, but you should be aware that there are important terms and conditions attached.

ME Online Savings Account

Savings Account Offer

Ongoing 3.05% p.a. variable rate when you link to a ME Everyday Transaction account and make a weekly purchase with your Debit MasterCard using tap & go. Available on balances up to $250,000.

  • Bonus Rate: 1.75% p.a.
  • Monthly Account Fees: $0
  • Minimum Balance: $0
  • Minimum Deposit: $0

    Compare savings accounts below

    Rates last updated December 8th, 2016
    $
    $
    months
    Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned
    ME Online Savings Account
    Ongoing, variable 3.05% p.a. rate when you link to a ME Everyday Transaction account and make a weekly purchase with your Debit MasterCard using tap & go. Available on balances up to $250,000.
    3.05% 1.30% 1.75% $0 $0 / $0 Open More
    Citibank Online Saver
    Introductory rate of 3.00% p.a. for 4 months, reverting to a rate of 1.70% p.a. Available on balances below $500,000.
    3.00% 1.70% 1.30% $0 $0 / $0 Open More
    RaboDirect High Interest Savings Account
    Introductory rate of 3.05% p.a. for 4 months, reverting to a rate of 2.00% p.a. Available on balances below $250,000.
    3.05% 2.00% 1.05% $0 $0 / $0 Open More
    ING DIRECT Savings Maximiser
    Ongoing, variable 2.75% p.a. when you link to an ING Orange Everyday bank account and deposit $1,000+ each month. Available on balances up to $100,000.
    2.75% 1.60% 1.15% $0 $0 / $0 Open More
    Bankwest Hero Saver
    Ongoing, variable 2.65% p.a. rate when you deposit at least $200 each month and make no withdrawals. Available on balances up to $5,000,000.
    2.65% 0.01% 2.64% $0 $0 / $0 Open More
    AMP Saver Account
    Introductory rate of 2.55% p.a. for 4 months, reverting to a rate of 2.10% p.a. Available on balances below $5,000,000.
    2.55% 2.10% 0.45% $0 $0 / $0 Open More
    ANZ Online Saver
    Introductory rate of 2.85% p.a. for 6 months, reverting to 1.25% p.a. Available on the entire balance.
    2.85% 1.25% 1.60% $0 $0 / $0 Open More
    Westpac eSaver
    Introductory rate of 2.71% p.a. for 5 months, reverting to a rate of 1.25% p.a. Available on the entire balance.
    2.71% 1.25% 1.46% $0 $0 / $0 Open More
    HSBC Serious Saver
    Introductory rate of 2.25% p.a. for 4 months, reverting to a rate of 1.60% p.a. Available on balances below $1,000,000.
    2.25% 1.60% 0.65% $0 $0 / $0 Open More
    BankSA Maxi Saver
    Introductory rate of 3.00% p.a. for 3 months, reverting to a rate of 1.05% p.a. Available on the entire balance.
    3.00% 1.05% 1.95% $0 $1 / $1 Open More
    Bank of Melbourne Maxi Saver
    Introductory rate of 3.00% p.a. for 3 months, reverting to 1.05% p.a. Available on the entire balance.
    3.00% 1.05% 1.95% $0 $1 / $1 Open More
    BankSA Incentive Saver Account
    Ongoing, variable 1.85% p.a. when you make at least one deposit each month and no withdrawals. Available on the entire balance.
    1.85% 0.01% 1.84% $0 $0 / $0 Open More
    Bank of Melbourne Incentive Saver
    Ongoing, variable 1.85% p.a. when you make at least one deposit and no withdrawals each month. Available on the entire balance.
    1.85% 0.01% 1.84% $0 $1 / $1 Open More
    ANZ Progress Saver
    Ongoing, variable 1.91% p.a. when you link to any Australian everyday bank account and deposit $10+ each month. Available on the entire balance.
    1.91% 0.01% 1.90% $0 $10 / $10 Open More
    Westpac Reward Saver
    Ongoing, variable 1.85% p.a. when you deposit at least $50 and make no withdrawals each month. Available on the entire balance.
    1.85% 0.01% 1.84% $0 $0 / $0 Open More

    Can I have multiple savings accounts with the same bank?

    It’s entirely possible for you to open several savings accounts with the same financial institution as part of a plan to achieve your savings goals. Not only does this provide a more effective way for you to manage your finances, but most banks will offer easy access with all your account balances on the one page so that you can keep track of your funds.

    Bonus interest rates are typically awarded on one savings account only

    However, you should be aware that this approach does have its drawbacks. The biggest disadvantage is that it limits the amount of interest you are able to earn. If your savings account pays bonus interest whenever you meet certain requirements, such as depositing a certain amount each month or making minimal withdrawals, you may not realise that this bonus interest rate is typically only payable on one account per customer.

    If you open more than one account, only the first account will be able to earn the highest rate of interest - all other accounts will only earn a standard variable rate of interest, which could be as low as 0.01% p.a.

    It’s also worth pointing out that many financial institutions place a limit on the number of specific accounts you can open up. For example, a bank may only allow one high-interest savings account per customer.

    Does the government guarantee still apply to all my savings accounts?

    The government guarantee insures your deposits of up to $250,000 per person, per institution as long as the funds are held in an Authorised Deposit-Taking Institution (ADI). If the total balance of your savings accounts with the same bank doesn't exceed $250,000 then it's usually covered.

    However, if your total balance is over $250,000 then you may want to consider putting the funds away in another ADI.

    Find out more about how banks protect your money here.

    What are the benefits of having multiple savings accounts?

    One of the biggest benefits of opening multiple savings accounts is that it makes it easy to save towards more than one goal. By setting up a regular transfer to each individual account, you can gradually work towards each savings goal. You could have one savings account for large bills, one for your next overseas holiday, one for a new car and one to help pay for your kids’ education.

    When you only have one savings account, you can tend to prioritise just one of your savings goals.  All your hard-earned cash goes into one account for one goal, which means you aren’t putting any money aside to achieve your other financial goals.

    You can also benefit from having more than one savings account if you need to keep some of your savings separate from the rest. For example, if you want to create a rainy day fund so that you can access money in an emergency, creating a separate account may be the best way to stop you dipping into your emergency fund.

    There’s also a chance that you may need to make regular withdrawals from your savings, and if your account limits the number of withdrawals you can make each month, this may not be possible. If you have multiple savings accounts in your name, you can withdraw money from each account without exceeding any limits, which is a much more effective way to manage your finances.

    Finally, having multiple savings accounts allows you to take advantage of different account features. For example, in addition to a high-interest savings account that doesn’t allow regular withdrawals, you may wish to open a separate savings account that still allows you to earn interest while  also offering easier access to your funds.

    Are there any other disadvantages to having multiple savings accounts?

    Regardless of whether you open multiple savings accounts across several financial institutions or with the same bank, there are several other potential disadvantages you should consider. These include:

    • It can get confusing. Although the aim of opening multiple accounts is to simplify your savings, the opposite can end up occurring. Keeping track of several accounts can be time-consuming and confusing, so make sure you can handle it before you adopt this approach. The last thing you want to do is lose track of any of your money.
    • Minimum balance requirements. If you spread your funds around across multiple accounts, you may struggle to meet the minimum balance requirements of some savings accounts. Similarly, if you open an account that offers tiered interest - a higher interest rate on higher balances - you could miss out on the maximum available rate by moving some of your funds into other accounts.
    • Extra fees. Opening more bank accounts means you are exposing yourself to the risk of paying extra fees. From ongoing fees to withdrawal fees and even charges that may apply if you fail to meet minimum balance requirements, these costs can quickly add up and eat into your savings.
    Back to top

    How many savings accounts do I need?

    The amount of savings accounts you need varies depending on your financial circumstances and goals. If you have several short-term and long-term savings goals and you’re having trouble managing them all with just one account, opening extra accounts can make it a whole lot easier. Similarly, if you receive income from multiple sources, you may find it easier to transfer the income from each source into a separate savings account and save towards specific goals.

    On the flipside, having one savings account may not be a problem for you. If you’re organised, able to prioritise your goals and can efficiently keep track of your savings progress, one account could be all you need.

    But as long as you’re earning interest, building a savings balance and making progress towards your financial goals, it doesn’t matter how many accounts you have. Just remember to compare the interest rates, fees and features of several savings accounts before you open a new one.

    Tim Falk

    A freelance writer with a passion for the written word, Tim loves helping Australians find the right home loans and savings accounts. When he's not chained to a computer, Tim can usually be found exploring the great outdoors.

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    Savings Account Offers

    Learn about our information service
    ME Online Savings Account

    Maximum Variable Rate

    3.05%

    Standard Variable Rate

    1.30
    ING DIRECT Savings Maximiser

    Maximum Variable Rate

    2.75%

    Standard Variable Rate

    1.60
    Citibank Online Saver

    Maximum Variable Rate

    3.00%

    Standard Variable Rate

    1.70
    Bankwest Hero Saver

    Maximum Variable Rate

    2.65%

    Standard Variable Rate

    0.01

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