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4 Savings Accounts Every Person Should Have

Written by Millennial In debt on April 19, 2019

FTC: I am not a financial advisor and this post is not sponsored. All thoughts and weird opinions are my own. 

Before I bought my home, I had about 5 different savings accounts. But boy... life comes at you fast and has a way of humbling you real quick. Now I have about three struggle accounts, which according to everyone is "normal" after a large investment purchase. I don't aim to subscribe to that thinking, because I don't want to be caught with my ass out (for lack of a better phrase)

I'm currently in a slow and steady race to rebuild my various savings accounts. It can be a bit difficult depending on the randomness of circumstances from month to month, but that's why it's so important for me to place so much focus on rebuilding them as quickly as my money allows. 


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Savings accounts are your safety net, when life comes at you hard and fast (and boy oh boy it surely will). Some people rather keep all of their money in one savings account and that really almost equates to putting all of your money in a shoebox under your bed. It's dangerous, and doesn't give you enough return on your money. There are four main savings accounts you want to focus on opening/ building (and when you get really set you can even open up a fifth one... but we're not there yet)

These four savings accounts every person should have will help make unexpected life occurrences more manageable and easier to deal with. They'll also help to keep you motivated to continue saving (and may even cross the line into a fun territory)

Four Savings Accounts Every Person Should Have 

1. Online Savings With High Interest Rates: If you didn't know (I'm here to school ya), online savings accounts have a far higher interest rate than your regular big banks such as Chase or Citibank. You will want to put your money in a high yield account such as Capital One 360 or Synchrony. I personally use Capital One and have had a savings account with them for the last three years. I like the fact that I can create mini sub divisions of savings within the one savings account and I can easily transfer money from my main commercial banking accounts.

I've been able to earn more interest in this account than in my regular commercial banking savings account even though it has a smaller balance. Why? That is because it is an online savings that does not have to pay tellers, storefronts or other employers. By cutting those costs online savings usually offer higher interest rates and better return on your money.

I used to use this account for Christmas gifts, and my dog's medical expenses. This past year I used 98% of it to furnish my home... so this account is in a major rebuilding phase. The sub divisions I was able to create using Capital One 360, enabled me to send my savings automatically into the right categories and that made all the difference whether I was saving for vacation or purchasing Christmas gifts. 

2. Emergency Savings Account: This is a no brainer when it comes to the reasoning. An emergency savings fund is needed to cover the costs of life that are not often anticipated, but come up way more than they should. Emergency funds are usually used for costs that can no longer be covered due to loss of funds. If you lose your job, you want to be able to tap into your emergency fund to cover your bills until you can get a new job. This is why most people believe it is ideal and practical try and have 3-6 months worth of expenses in their emergency savings account. 

That number is so big in my eyes, that it can be a bit daunting when trying to build or re-build your emergency savings account. It is important to stay focused on the goal at hand, and remember that having something in there is better than nothing. Don't feel because you don't have a certain amount in there that you can't eventually get there in your own time. Start off with a small goal. Even if it simply 1,000 dollars, you're taking the right step towards building financial freedom. 

3. Regular Savings: Your regular savings account should be used for things that are emergencies but not necessarily life or death. For example if my home needs emergency repairs like fixing a roof, or my dishwasher breaks, I would use my regular savings account to cover that. If I lose my job and need to pay my mortgage then I would use my emergency savings account to fund those expenses. A regular savings can make life a lot easier if you are dedicated to regularly contributing to it. In my prime financial life (I know I know... I'm complaining a lot I'll stop), I used to save about 1080 a month into my regular savings. I'd say 1,000 into my main account, and 80 towards a vacation. It didn't matter that I didn't book the trip, or know where I was going. I was using it as a sinking fund to pay for any last minute trips or random air fare glitches I had to capitalize on. 

When I purchased my first home my regular savings also because my emergency savings fund. I'm still working on separating the two to make sure that I know where everything is, where it belongs, and how much I can spend/ vs. how much I want to spend. 

4. Retirement: I know I know ... you're tired of hearing about retirement especially when you're in your 20s or early 30s. That's because it is important! If you haven't watched my latest YouTube video detailing the different between retirement plans, now is the time! Since we know that social security is not going to hold it down for us, we need to make deliberate decisions and take steps to securing out  financial bag for years to come even when we're no longer working. 

You should be asking questions at your job about a 401K and whether or not your company will match your contributions. If they do... good capitalize on that. If not it is still worth investing in yourself and future self! 

Feel free to ask us any questions below about the savings accounts and if you use a different one? 

Until the next time, 

Hey there! I'm Melissa, co-founder of Trials n Tresses, natural hair and beauty lover, binge tv watcher and lover of life. When I am not creating content for TNT, I'm busy teaching the future of society.
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