I have 13 savings accounts with Capital One, and I can't think of a better way to reach my savings goals fast

Insider's experts select the best products and services in order to help you make smart financial decisions. Here's how. Sometimes we may receive a commission from our partner, but our opinions are 100% ours. These offers are subject to terms. I love categories and systems. This extends to my savings strategy.
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My family is currently saving money for repairs and maintenance on our two cars as well as our six-monthly insurance premiums, taxes and a furnace for our house. Setting up digital savings buckets is my favorite way to prepare for all these goals. I have at most 13 savings accounts I use to achieve different goals. Although it may seem chaotic, it helps me stay organized with my finances. Featured Partner Offer: 4.5/5 A five-point star A 5 point star A 5 point star A 5 star Annual Percentage yield (APY). 4.5/5 Capital One 360 Performance Savings
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I wasn't sure if I had the funds to pay $400 for new tires, or if it was to be used to pay for a medical bill. There are many things you can save for as a three-person family with two pets. If the money is intended for a variety of purchases, it can be confusing to look at a large amount of money in the bank. Capital One 360 is an online bank that offers a great range of banking products. It is well-known for its credit cards but also has a decent selection of online banking products. Capital One 360 Performance Savings account offers five times the interest rate than traditional savings accounts at brick-and-mortar banks. There are no monthly maintenance fees. All balances earn a higher-than average APY. This was the best part of Capital One 360.
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This way, each goal has its own fund. Capital One allows me to contribute to multiple high-yield savings accounts, as well as to one account that is geared towards my goals. Each account earns interest every month and I can view a summary of each account from my online banking dashboard. Here are a few things that I am saving right now with Capital One. Car repairs and maintenanceMy husband, and I, have both paid off our cars. However, they still need to be maintained from time-to-time. Medical expensesWe both have insurance copays that we pay when we visit the doctor, as well as any other medical bills that might arise. This account was also created to help my son pay for braces.
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This helps me make sure I have enough money to pay my tax bill on time. Travel can be expensive so I like to save money for it. It motivates me to save separately for travel and gives me peace of mind that I can book a trip anytime during the year. Household expensesI also like saving for household maintenance and any unexpected expenses like a new furnace.
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Featured Partner Offer 4.5/5 A five pointed star A five pointed star A five-pointed star a five-pointed symbol A five pointed sign A five-pointed star a cinque pointed icon Annual Percentage Yield (APY) Capital One 360 Performance Savings Emergency fund vs. sinking fund Featured Partner Offer: 4.5/5 A five-pointed star A Five-Pointed Star A Five Pointed Star A Five-Pointed Star A Five Pointed star A Five-Pointed star A Five-Pointed star Annual Yield (APY). 4.5/5 Capital One 360 Performance Savings Capital One 360 Performance savings Emergency fund vs. Sinking fund Because all of my other accounts are technically sinking, I keep my emergency fund separate from the rest. All my savings accounts, except for the emergency fund have one thing in common: they are for future expenses I anticipate. I know that I will need to pay taxes, and we will eventually get medical bills.
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I know that my cars will need to be maintained and that I will travel sooner than later. What I don't know, however, is whether my husband or I will lose income or if there will be unexpected expenses. My emergency fund is there for true emergencies we don't anticipate. My emergency fund is meant to cover unplanned expenses. Sinking funds are for expenses planned, but I prefer my way of thinking about it. It is impossible to predict the future so it would be a shame to put all my savings in one account and then spend money on an emergency only to discover that a real emergency will occur a few days later. We can stop living paycheck to paycheck by having 13 high-yield savings accounts that we use for our savings goals.
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It gives me more clarity and financial safety, which is another benefit of being organized and finding a system that works.