PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiIHNyYz0iaHR0cHM6Ly9zdGF0aWMubXlmaW5hbmNlLmNvbS93aWRnZXQvbXlGaW5hbmNlX3ZpZXdwb3J0X2RldGVjdGlvbi5qcyI+PC9zY3JpcHQ+PHNjcmlwdCBhc3luYyB0eXBlPeKAnHRleHQvamF2YXNjcmlwdCI+bXlmaVdhdGNoV2lkZ2V0KCdteWZpV2lkZ2V0XzAnKTs8L3NjcmlwdD4=Sarah Li-Cain is a finance writer, podcast producer and an Accredited Financial Counsellor® specializing in banking, loans, investment and insurance topics. Her work has appeared in major outlets such as US News. CNBC Select, Fortune, and Business Insider.Hearst Television participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. This may influence which products we write about and where those products appear on the site, but it does not affect our recommendations or advice, which are grounded in research.Mobile app users, click here for the best viewing experience.It can be hard to track the money you’ve saved toward a goal when it all goes into one pot. That’s where multiple savings accounts can come in handy. They organize your money and help you stick to the budgets you’ve set for different purposes, whether that’s a wedding, an emergency fund, or a down payment on a house.The number of savings accounts you should have will depend on your specific goals and how willing you are to manage several accounts. Here are a few tips for determining how many savings accounts you need to keep your finances on track.How many savings accounts should I have?A good rule of thumb is to have two savings accounts — one for short-term goals and one for medium- to long-term goals. However in reality, you can have as many savings accounts as you need to help you reach your goals. Having a separate account for each goal can make it easier to see exactly where you stand and estimate how much longer it will take you to reach it. Keeping money in separate savings accounts can also help ensure that you don’t chip away at savings you’ve earmarked for a specific purpose.For instance, you can have savings accounts for the following goals:RetirementEmergency savingsSaving for a down payment on a homeTuition payments for your childrenHome maintenance or repairsPurchasing a carPaying for a vacationHaving enough money for your upcoming weddingThe good news is that many banks make it easy to open and track multiple savings accounts within the same institution. As long as you lay out clear goals and track where you deposit money each month, managing multiple savings accounts may not take as much time as you think.Types of savings accountsDifferent types of savings accounts serve different needs. Here are a few options and when to consider using them:Traditional savings accounts: You’ll find these accounts at banks and credit unions. Interest rates are typically higher than what you’d find with checking accounts but not as high as other savings vehicles. If you’re uncomfortable with online banking or want in-person access to banking, a traditional savings account could be a good fit.High-yield savings accounts: You’re mostly likely to find high-yield savings accounts at online banks. These accounts function like traditional savings accounts but offer substantially higher interest rates than than the national average. A high-yield savings account is a great way to build your emergency fund and reach other goals in a more timely manner.Health savings accounts (HSA): This is a type of tax advantaged savings account used to pay for eligible medical expenses. You’ll need to participate in a qualifying high-deductible health plan and can only contribute up to a certain amount.Certificates of Deposit (CD): A CD is a time-bound account in which you agree to keep a certain amount of money on deposit for a specified period of time. CDs offer a competitive interest rate and guaranteed earnings, as long as you don’t make an early withdrawal. They are a good option for saving toward long-term goals.Money market accounts: This type of account, held at a bank or credit union, offers higher interest rates, much like a CD. However, you need to meet higher minimum deposit and account balance requirements. Since they typically include check-writing capabilities, they’re a good match if you need to access your money regularly.Retirement accounts: An IRA is a tax-advantaged account that allows you to invest in low-risk assets and grow your retirement savings over time. They are not FDIC insured but tend to have higher long-term returns than other savings accounts. Generally, you can’t withdraw money from an IRA without a penalty until you turn 59.5, so you’ll want to use it for long-term retirement planning.Pros of multiple savings accountsThere are plenty of advantages to having multiple savings accounts, including:Tracking your goals more easily: Having several savings accounts helps you easily see progress you're making toward each goal. It will also help you avoid touching money that you want to grow.Keeping your emergency savings separate: Having emergency savings is essential for protecting yourself against unforeseen circumstances, such as for car repairs or a large medical bill. Having multiple accounts ensures you have this money set aside in case you need it, so you can avoid going into debt.Taking advantage of better offers: You may want to keep a savings account that’s linked to your checking account while opening another savings account with a higher interest rate at a different bank, for example. Or some banks may offer a sign up bonus if you open an account and deposit a certain amount of money for a set period of time. Prioritizing savings: Taking a mindful approach to saving helps you commit to your goals. And, by splitting your savings into multiple accounts, you’ll be able to more easily track how well you’re sticking to your budget.Cons of multiple savings accountsWhile having multiple savings accounts can be beneficial, there are some downsides, including:It can get overwhelming: Yes, your bank may try to make it easier for you to view your savings accounts. But it could still be hard to track your progress in multiple accounts. You could end up paying fees: Some banks only waive monthly maintenance fees if you keep a certain amount of money on deposit. If you have multiple accounts, the money could be too spread out to meet all the different requirements. If so, you could be paying more fees than you’d like. You may not earn as much interest: Some savings accounts may require a minimum balance to receive the best interest rates. If your money is divided among multiple accounts, you might not be able to meet the threshold. What’s more, you could miss out on some of the benefits of compounding interest, which is the interest you earn on already accrued interest. The more money you have in one place, the more it will grow over time. How much money should I have saved?How much you should save toward your financial goals will depend on factors such as your goals, income, age, and expenses. For instance, if you want to set aside money for an emergency fund, most experts suggest saving at least three to six months worth of expenses. Someone who has fewer expenses might have a lower savings goal.Or, if you want to go on a vacation, you can plot out where you want to go and set your savings goal with the estimated cost of transportation, lodging, food, and entertainment in mind. You’ll also want to factor in how long you have to save and budget accordingly.Bottom lineHaving multiple savings accounts can help you reach your financial goals, but only if you’re able to keep track of all the places where you put your money. To help avoid fees and earn as much interest as possible, compare savings accounts among banks to ensure you fully understand what you could be paying and earning on your deposits. And, keep your eyes on the prize: The best savings strategy of all is the one that’s continually getting you closer to your goals.Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.This article was originally published on SFGate.com and reviewed by Lauren Williamson, who serves as Financial and Home Services Editor for the Hearst E-Commerce team. Email her at lauren.williamson@hearst.com.