Most people have one bank account where their savings account is attached to their checking account. If you're like most people (me) then that savings account doesn't stand a chance at growing. Reason being because it's easy accessible. The funds in my savings account can be easily transferred to my checking account for spending purposes. But wait that's not the only thing that happens. When your savings account is connected to your checking account, and you don't have enough money in your checking account to cover a bill that's coming out, your bank will automatically transfer funds from your savings to your checking to cover the expense. Now, this is something that you can opt out of, but you will receive an overdraft fee which is usually $32 and that is never good. We don't want extra fees.
This is why I recommend that you have multiple bank accounts for your needs. The first account being your primary checking account that your direct deposit goes in. This checking account is the account that your bills should be coming out. For example; utilities, car insurance, and auto loan payments. We highly recommend that you automate these payments to avoid late fees and credit dings.
The second bank account should be your savings account that's attached to your checking account. This savings account is where you should be saving for your vacations, holiday gifts, birthday celebrations. You can think of this account as your sinking fund. Some people like to separate their sinking funds account and that's totally fine. do what's best for you. You can also find a banking institution that offer multiple bucket accounts in the same account to separate those different sinking funds.
The third bank account should be your second checking account. This account should be with another financial institution. This bank account should be used for your personal/lifestyle such as; getting your hair, nails, makeup, entertainment or even dining out. This way you know exactly how much you have to spend so that you wont dip into your bills account.
The fourth account will be your savings #2 account that's attached to your second checking account. We will use this account for our longer term goals. For example saving for a down payment on a home, saving for a wedding, maybe you're planning to have a baby in the next two to three years. Having this saving account will prepare you for your goals without busting your budget.
The fifth bank account is where your emergency fund is placed. This account is your safety net for unforeseen circumstances. Unexpected medical bills, Car repairs, job loss, etc. This should also be with another financial institution. I highly recommend you use an online high yield savings account. These accounts typically have a higher APY then your traditional bank savings account.
Note that you should do research in what banks you choose to hold your money. You also want to make sure that the bank of your choice is FDIC insured to protect you money.