Managing your finances can be challenging, especially when juggling multiple goals and setting aside funds for each of them within a single account. You might be tempted to open multiple accounts as a method to organize your money — but is that the best approach for you?
Instead of the multiple accounts method, Ally Bank's Savings Account has a feature called savings buckets to help you organize your funds all in one place.
An alternative to multiple savings accounts
You can create up to 30 buckets in your Ally Bank Savings Account — one for each of your goals. By consolidating your savings into a single account, you can streamline your banking experience and simplify record-keeping, all while enjoying the same benefits as having multiple accounts — without the drawbacks. Here are a few other features of savings buckets in Ally Bank’s Savings Account:
Goal-specific savings: Assign specific goals to different buckets (such as a vacation or a future down payment). This separation helps keep you from accidentally dipping into funds earmarked for a particular purpose, while still keeping everything in one place to help protect you from overdrafting.
Budget management: Multiple buckets can serve as a budgeting tool. You can keep an eye on the bigger picture, while still viewing your funds broken out by goal or category.
Emergency fund protection: Maintaining a separate bucket for your emergency fund reduces the temptation to use those funds for non-emergencies.
Tailored savings strategies: Not all savings goals are created equal. Some may require regular contributions, while others might involve lump sum deposits. You can set your buckets up exactly as you like in your Ally Bank Savings Account.
FDIC coverage: Ally Bank is insured by the FDIC (Federal Deposit Insurance Corporation), so your money is protected up to $250,000 (including principal and interest) per depositor, per qualifying account ownership category.
Savings buckets offer a simplified method for organizing your finances. Managing numerous accounts can become overwhelming and confusing, potentially resulting in complexities in tracking your financial goals. The more accounts you have, the higher the likelihood of forgetting about some of them, which can result in dormant accounts and a loss of potential interest earnings over time.
How to manage multiple goals in one account
Ally Bank's savings buckets are a simple solution that addresses the concerns associated with multiple savings accounts. While saving for various goals demands flexibility and accuracy, buckets combine the simplicity of centralizing your savings in a single account with the precision of categorizing your financial goals separately. With this feature, you can seamlessly achieve all the benefits of goal-specific savings, enhanced budgeting and tailored strategies within one convenient account. Whether you're planning a vacation, safeguarding your emergency fund, preparing to grow your family or cultivating a down payment on a new home, our savings buckets provide you with unparalleled organization and financial control.
