Savings Accounts With Buckets

The right savings account can help you reach multiple goals at once, and savings accounts with buckets make it easy to track your progress by dividing your money into separate categories.

Not all accounts offer this feature, so in this post, we’ve rounded up six top options that include buckets and great perks like no fees, competitive APYs, and no minimum balance requirements.

1. Ally Bank

among the best savings accounts thanks to its combination of high rates, valuable features, and excellent customer service. Here are the key account details:

• Interest rate: 3.80% APY, which means you earn $38 annually for every $1,000 saved
• Fees: No monthly maintenance fees or other common charges
• Minimum deposit: No minimum required to open or maintain the account

These features make Ally Bank accessible to anyone looking to start saving, regardless of how much money they have available.

Pros of banking with Ally Bank:

Ally Bank shines when it comes to features and tools that make saving both easier and more effective. Their combination of modern technology and user-friendly features helps account holders build their savings automatically and stay organized with minimal effort.

• You can create up to 10 custom savings buckets to organize your money for different goals.
• The account includes helpful savings tools like recurring transfers and round-ups that automatically save your spare change.
• Customer service is available 24/7 through online channels and phone support.
• The bank offers surprise savings transfers that analyze your spending and move extra money to savings.
• Their mobile app makes it simple to manage your buckets and track progress toward goals.

These tools and features work together to create a comprehensive savings system that helps you reach your financial goals faster and with less effort.

Cons of banking with Ally Bank:

Before opening an Ally Bank account, you should consider several important limitations that might affect how you use the account:

• Monthly withdrawals are limited to 10 transactions, which might be too restrictive if you need frequent access to your money.
• The online-only structure means no physical branches for in-person support or assistance.
• You cannot deposit cash directly into your account, which is inconvenient for cash payments or tips.
• The savings account does not include an ATM card, requiring transfers to a checking account to access your money.

These limitations mainly affect people who prefer traditional banking services or need regular access to their savings. However, if you primarily bank online and don't mind the digital-first approach, these drawbacks might not significantly impact your banking experience.

2. Capital One 360 Performance Savings

Capital One combines the convenience of online banking with the security of a traditional bank. Their Performance Savings account offers competitive rates and useful features while providing access to physical branches when needed. Here are the essential details:

• Interest rate: 3.80% APY, helping your money grow at a competitive rate.
• Fees: No monthly fees, with only a $30 charge for outgoing wire transfers and $10 for cashier's checks.
• Minimum deposit: No minimum is required to open or maintain your account.

These features put Capital One on par with online-only banks while offering additional conveniences many competitors cannot match.

Pros of banking with Capital One:

Capital One stands out by offering a blend of digital and traditional banking features. Their Performance Savings account includes several benefits that make it easier to manage your money effectively.

• You can open multiple savings accounts for different goals, creating a natural bucket system for your money.
• Physical branches are available for those times when you need face-to-face assistance.
• Their mobile app consistently ranks among the best, with a 4.9 out of 5 stars rating in the iOS store.
• The account integrates seamlessly with other Capital One products for easier money management.

These features combine the best aspects of traditional and online banking, giving you flexibility in how you manage your savings.

Cons of banking with Capital One:

While Capital One offers many advantages, some aspects of the account might not work for everyone. Consider these limitations before opening an account.

• Interest compounds monthly instead of daily, which means slightly slower growth for your money.
• The savings account does not include ATM access, requiring transfers to access your funds.

These drawbacks might affect how you use the account, particularly if you want faster interest compounding or prefer having all your savings in one account. However, the strong mix of online and traditional banking features makes this account worth considering for many savers.

3. Betterment Cash Reserve Account

Betterment might be best known for investing, but their Cash Reserve account proves they understand savings too. This account offers one of the highest interest rates available while providing flexible features for organizing your money. Here are the key details:

• Interest rate: 4.50% APY, plus an extra 0.50% APY for 3 months with qualifying deposits.

• Fees: No monthly maintenance fees or other regular charges.

• Minimum deposit: No minimum balance is required to open or maintain the account.

These features make Betterment an attractive option for savers looking to maximize their interest earnings while avoiding fees.

Pros of banking with Betterment:

Betterment brings investment expertise to savings accounts, creating a powerful platform for growing your money. Their approach focuses on combining high yields with practical features.

• The interest rate ranks among the highest available, helping your money grow faster.
• You can make unlimited transfers in and out of your account with no penalties.
• The savings bucket feature lets you track multiple goals, even connecting outside accounts.
• Their user-friendly app makes it simple to monitor your savings progress.

This combination of features creates a robust savings platform that works well for both short-term and long-term goals.

Cons of banking with Betterment:

Before opening a Betterment Cash Reserve account, there are several limitations to consider that might impact your banking experience.

• Customer service hours are limited to weekdays between 9:00 AM and 8:00 PM, with no weekend support.
• There are no physical branches available for in-person banking services.
• Mobile check deposit requires qualification, including being a customer for 30 days or receiving $500 in direct deposits.
• The account structure might feel unfamiliar to those used to traditional banking.

While these limitations primarily affect people who prefer traditional banking services, the high interest rate and flexible features make this account worth considering for digitally comfortable savers.

4. Wealthfront Cash Account

Wealthfront takes a unique approach to savings with its Cash Account, combining checking and savings features into one versatile account. Like Betterment, they bring their investment expertise to everyday banking while offering competitive rates. Here are the essential details:

• Interest rate: 4.00% APY on your entire balance, with no maximum limit.
• Fees: No fees for standard banking services or account maintenance.
• Minimum deposit: No minimum balance is required to get started.

These features create an accessible account that works well for both new and experienced savers.

Pros of banking with Wealthfront:

Wealthfront designed their Cash Account to simplify banking while maximizing your earning potential. Their modern approach to saving comes with several notable advantages.

• You can create unlimited savings categories to organize your money for different goals.
• The account includes ATM access with reimbursement for two out-of-network fees monthly.
• Interest compounds daily, helping your money grow faster than accounts with monthly compounding.
• You get access to a network of 19,000 fee-free ATMs nationwide.
• The account integrates smoothly with Wealthfront's investment services.

This combination of features makes the account particularly appealing for people who want to manage their spending and saving in one place.

Cons of banking with Wealthfront:

While Wealthfront offers many attractive features, there are some potential drawbacks to consider before opening an account.

• The account combines checking and savings, which might not suit those who prefer separate accounts.
• There are no physical branch locations for in-person banking services.

These limitations mainly affect those who prefer traditional banking setups or need regular face-to-face services. However, these drawbacks might be minor concerns for digitally savvy users looking for a comprehensive money management solution.

5. SoFi Checking and Savings

SoFi started as a student loan company but has evolved into a full-service financial platform. Their combined checking and savings account offers competitive rates and unique membership benefits you will not find at traditional banks. Here are the key details:

• Interest rate: 3.80% APY for qualifying accounts with direct deposit.
• Fees: No monthly maintenance, minimum balance, or overdraft fees, with only a $30 charge for outgoing wires.
• Minimum deposit: No minimum is required to open or maintain the account.

These features provide a solid foundation for anyone seeking more interest while avoiding common banking fees.

Pros of banking with SoFi:

SoFi stands out by offering more than just a bank account. Their membership model includes several valuable perks and features that enhance the banking experience.

• SoFi Vaults work like savings buckets to help organize your money for different goals.
• Members get access to career coaching, financial advising, and exclusive networking events.
• The account includes automatic savings features like round-ups to help grow your balance.
• Members receive discounts on other SoFi products including loans and investments.
• The mobile app makes it easy to manage your money and track your financial goals.

These benefits create a comprehensive financial platform that goes beyond basic banking services.

Cons of banking with SoFi:

While SoFi offers an impressive package of features, there are several factors to consider before opening an account.

• Opening a savings account automatically creates a checking account, which might not suit everyone's banking preferences.
• Cash deposits require a third-party service that charges up to $4.95 per deposit.
• The highest interest rate requires setting up direct deposit to your account.

These limitations primarily affect people who regularly deposit cash or prefer keeping their checking and savings at different banks. However, the combination of competitive rates and extra perks makes this account worth considering for many savers.

6. SmartyPig by Sallie Mae

SmartyPig takes a unique approach to saving by focusing entirely on goal-based savings. While it might sound playful, this account offers serious benefits for people working toward specific financial targets. Here are the essential details:

• Interest rate: 3.90% APY, though rates may vary based on your balance.
• Fees: No fees for standard banking activities, including transfers and withdrawals.
• Minimum deposit: No minimum balance is required to open or maintain your account.

These features make SmartyPig accessible to anyone looking to start saving, regardless of how much they can set aside initially.

Pros of banking with SmartyPig:

SmartyPig specializes in helping people save for specific goals. Their focused approach includes several features designed to keep you motivated and on track.

• You can create multiple savings goals and fund them with automatic recurring transfers.
• The platform sends helpful reminders to keep you focused on your savings targets.
• New customers can earn a $10 bonus when referring friends to the platform.
• The goal-planning tools help you calculate how much to save and for how long.

These features create a savings environment that encourages consistent progress toward your financial goals.

Cons of banking with SmartyPig:

Before opening a SmartyPig account, consider several potential limitations that might affect your banking experience.

• Customer service is only available during limited hours on weekdays from 9 a.m. to 6 p.m. ET.
• The interest rate structure changes based on your balance, potentially reducing your earnings.
• The platform lacks advanced banking features found at larger institutions.

While these drawbacks might concern those seeking a full-service bank, SmartyPig remains a solid choice for goal-focused savers who want a dedicated tool for reaching their financial targets.

What Are Savings Accounts with Buckets?

A savings account with buckets allows you to organize your money into different categories, making it easier to track your financial goals. Instead of seeing one large balance, you can create separate "buckets" for different purposes, such as vacations, emergency funds, or home repairs.

How do buckets work?

Most people struggle to keep track of multiple savings goals in one account. Buckets solve this problem by creating clear divisions for your money. The process works much like sorting physical cash into separate envelopes, but everything happens digitally within your savings account.

Your money stays in one account where it all earns interest together. When you want to save for something specific, you simply create a new bucket and give it a label like "Emergency Fund" or "Vacation." Each bucket shows its own balance while your account tracks the total across all buckets. Most banks also let you set specific savings targets, making it easy to track your progress toward each goal.

The best part about this system is its flexibility. You can move money between buckets whenever you need to without dealing with actual bank transfers. This makes it much simpler to adjust your savings strategy as your priorities change.

Who should use savings buckets?

Savings buckets work particularly well for people juggling multiple financial goals at once. For example, if you're saving for a vacation while building an emergency fund and setting aside money for holiday gifts, buckets help you track each goal separately. Visual learners often find this system helpful because it clearly shows their progress toward each goal.

This system also creates helpful mental barriers against spending. When you see exactly how much you've saved for your emergency fund, you're less likely to dip into that money for other purposes. The clear organization helps you stay focused on your long-term financial goals while managing your day-to-day savings.

Benefits of Using Buckets in a Savings Account

Using buckets is not just about organization—it helps you stay disciplined with saving and reach your goals faster. Let's look at the main benefits that make bucket systems so valuable for savers.

1. Simplifies account management

Instead of opening multiple savings accounts, you can manage everything in one place while keeping funds separate for different purposes. This means less time spent on money management and more time focusing on what matters.

Also, having everything in one place also helps you earn more interest. Many banks offer better rates when you maintain higher balances. By keeping all your savings together while using buckets to organize it, you can qualify for these better rates while still maintaining clear separation between different savings goals.

2. Helps you qualify for better perks

Keeping your savings in one account makes it easier to meet minimum balance requirements for higher interest rates or account bonuses.

Banks often reward customers who maintain higher balances with better perks and features. When you use buckets instead of separate accounts, your combined balance helps you reach these threshold amounts more easily. This might mean higher interest rates, waived fees, or access to premium banking services.

For example, some accounts offer enhanced interest rates once your balance reaches $10,000. By keeping all your savings in one account with buckets, you're more likely to qualify for these bonuses than if you split your money across multiple accounts.

3. Keeps you motivated

Seeing clear progress toward each of your savings goals provides powerful motivation to keep saving. When you can easily track how close you are to affording that dream vacation or building your emergency fund, you're more likely to stick to your savings plan.

The visual nature of savings buckets also makes it easier to celebrate small wins along the way. Each time you see a bucket getting fuller, you get a clear reminder that your consistent saving habits are paying off. This positive reinforcement helps build better long-term financial habits.

4. Reduces the risk of spending your savings

When all your savings are in one place without clear separation, spending money meant for a long-term goal is easy. Buckets add a layer of accountability, making you think twice before dipping into a fund meant for something specific.

When funds are clearly labeled for specific purposes, you think twice before using them for something else. This extra moment of consideration often prevents impulse spending and helps keep your savings on track.

The system also helps you make more conscious decisions about your money. When you need to move funds between buckets, you must actively choose to do so. This deliberate action makes you more aware of how you're using your savings and helps prevent accidental overspending.

How Many Buckets Should You Have?

The ideal number of buckets depends on your financial goals, lifestyle, and priorities. While some people thrive with many specific categories, others prefer keeping things simple. The key is finding a balance that helps you stay organized without becoming overwhelming.

Start with three core buckets

To keep things simple, I recommend starting with three core buckets. These core categories cover your most important financial needs while keeping your system manageable. Each one serves a specific purpose in your financial life.

• Emergency fund: This bucket should hold 3-6 months of living expenses to protect you from unexpected job loss, medical bills, or major repairs. Think of it as your financial safety net that helps you avoid debt when surprises happen.
• Short-term goals: Use this bucket for expenses you plan to pay within the next year or two. This might include car repairs, holiday spending, or annual insurance premiums that you want to save for gradually.
• Big-picture goals: This bucket holds money for major life goals that take longer to achieve. Common examples include saving for a house down payment, starting a business, or planning a dream vacation.

Starting with these three buckets gives you a solid foundation for organizing your savings. You can always add more specific categories later as you get comfortable with the system.

Customize based on your priorities

Once you're comfortable managing your core buckets, you can add those other categories that match your personal goals. You might find that having dedicated buckets for specific expenses helps you save more consistently and avoid touching money meant for other purposes.

Here are some other bucket category ideas for different life goals or events:

Vacation fund

Planning a trip requires careful saving to avoid credit card debt. A dedicated vacation fund helps you set aside money throughout the year, making it easier to fully enjoy your travels without worrying about how to pay for them later.

Home repair fund

Houses constantly need maintenance and repairs. Setting aside a small amount each month in a dedicated home repair bucket prevents panic when the water heater breaks or the roof starts leaking.

Car replacement fund

Your current car won't last forever. Start saving now in a dedicated bucket, and you'll have options when it's time for a new vehicle instead of being forced into a high-interest loan.

Wedding savings

A wedding bucket lets you build your celebration fund gradually. Whether you're planning a small gathering or a large party, having dedicated savings helps you create the day you want without starting married life in debt.

Charity donations

Having a separate bucket for charitable giving ensures you always have money available to support causes you care about. This approach transforms giving from an afterthought into a consistent part of your financial life, letting you make a bigger impact over time.

Most people find that five to seven total buckets provide enough organization without becoming overwhelming.

The main idea is to choose categories that truly matter to you rather than creating buckets just because you can. Remember that your bucket system should evolve with your life, so don't be afraid to adjust categories as your goals and priorities change.

Tips to Reach Your Savings Goals Faster

These proven tips will help you make the most of your savings system while building your wealth more quickly.

1. Automate your savings

The easiest way to get rid of all stress around saving money is to automate your finances. Set up recurring transfers that move money into your savings buckets as soon as you get paid. This approach ensures you save consistently without relying on willpower or remembering to make transfers.

Many banks now offer tools that make saving even easier. Features like round-ups automatically save your spare change from purchases, while smart saving tools analyze your spending patterns to find extra money you can save. Using these automated features turns saving from a chore into a habit that happens in the background.

2. Prioritize what matters to you

Look closely at your current spending to find money you can redirect to savings. You might discover you’re spending significant amounts on things you don't really care about. By cutting back on these less important expenses, you can save more for the goals that truly matter to you.

For example, if you dream of traveling but spend a lot on subscription services you rarely use, canceling those subscriptions could help fund your vacation bucket faster. Focus on making intentional choices about where your money goes rather than spending out of habit.

If you want more information on how to prioritize your spending, read my article, Money Dials: How You Spend & Why (Expert advice on spending). The money dials is the easiest way to rank your spending and allocate your funds to the most important and beneficial areas of your life.

3. Pick the right savings account and stick to it

Constantly switching banks to chase slightly higher interest rates often wastes time and energy. Instead, choose a savings account that offers a consistently competitive rate, useful bucket features, and no monthly fees. Look for an account that makes it easy to manage your money and stay focused on your goals.

If you want more recommendations on savings account, you can also read my article, Best Online Savings Accounts (NYT Bestseller’s Picks). The article doesn’t focus on savings account with buckets, but there’s some more good suggestions there.

4. Increase your income

Building your savings becomes much easier when you have more money coming in. Look for opportunities to earn extra income beyond your regular paycheck.

• Start a side hustle based on your skills, like freelance writing, virtual assistance, or online tutoring.
• Ask for a raise at work by documenting your achievements and researching market rates.
• Sell digital products or items you no longer need through online marketplaces or local consignment shops.

Even small increases in income can significantly impact your savings when you maintain your current lifestyle and save the difference.

5. Use windfalls wisely

When you receive unexpected money like tax refunds, bonuses, or gifts, resist the urge to spend it all immediately. Instead, use the 50-30-20 rule to make the most of your windfall. Here's how to split up any unexpected money that comes your way:

• Save 50% for your most important financial goals like emergency funds or retirement.
• Use 30% to tackle any outstanding debt, starting with high-interest balances.
• Keep 20% for something enjoyable or meaningful to celebrate your good fortune.

This balanced approach to handling windfalls helps you build financial security while still enjoying the moment. Remember, every unexpected dollar is an opportunity to get closer to your Rich Life without sacrificing your current lifestyle.