It might seem strange to consider savings accounts, and particularly savings vaults, if Black Friday and holiday shopping season are top of your mind. Saving vaults are sub-accounts which help you track various savings goals. You can use them to organize your shopping and earn interest. These are just four of the ways that multiple mini savings accounts can be helpful in managing holiday spending. They can be used to:

1. Create a realistic budget for holiday shopping. Are you sure how much you will spend? It’s easier to answer these questions if you have your money in separate accounts.

Savings sub-accounts, sometimes called buckets, can be given nicknames by some institutions. This can be used to shop for holiday gifts, such as “gifts of family” or “gifts of friends”. These sub-accounts can be used to deposit money based on your budget or withdraw funds for purchases.

By opening separate savings accounts, vaults can be created. Online accounts allow you to set up electronic deposits, track balances and monitor your account from any device. You can quickly check how much you have left over for each gift-giving category. It’s possible to make sure that everyone on your gift-giving list is satisfied without spending too much.

Some savings accounts may have monthly withdrawal limits that limit the types of withdrawals such as electronic transfers. To learn more about your financial institution’s policies, you should consult them.

2. Holiday spending money should be kept separate from regular monthly expenses. You can make sure that the essential expenses such as utilities are paid by keeping gift-giving funds separate from your everyday checking account.

3. Credit card debt should be avoided. Credit cards can be used to purchase holiday items and earn rewards. It can be easier to pay off your card balance if you have the funds you need earmarked in savings. You should keep track of how much money you have and stick to your budget as you spend money. You can then transfer money from savings to pay your credit card bill.

It is a good idea to keep track of your savings. According to the federal Financial Literacy and Education Commission’s website “People who keep track their savings often save more because they have it in their mind.” You can also watch your savings while you shop to help you keep more of your money.

4. You can set your accounts up for future goals after the holidays. You might decide to save for next year’s gifts or to rename your accounts to reflect new savings goals such as “dream vacation” and “springtime repairs.” Your account balances will continue to grow if you make automatic deposits to each vault, such as every payday.

What should you look for in your savings account

A savings account should not have monthly fees and offer a strong annual percentage return (APY). According to the Federal Deposit Insurance Corp. in November 2022, the average savings rate was 0.24% APY. However, there are many savings accounts that earn more. Online savings accounts can earn as much as 3% APY after recent Federal Reserve rate rises. They don’t have a minimum balance or monthly fee.

Holiday shopping is easier with savings sub-accounts. These savings vaults will help you to both save and allocate your spending.