Once associated only with the wealthy, the practice of holding multiple bank accounts is becoming increasingly common among Ugandans looking to manage their finances more efficiently. As financial literacy grows and banking options diversify, many individuals are adopting multiple accounts to serve distinct purposes—such as daily spending, saving, investing, and business operations.

While some people still prefer managing their money through a single account, especially for simplicity, others are turning to a more segmented approach that aligns better with specific financial goals.

A Growing Trend in Financial Strategy

The rise of Savings and Credit Cooperative Organisations (SACCOs) has opened more avenues for saving, but formal banks remain the go-to institutions for many, especially those managing more than one account. Ugandans are increasingly creating separate accounts for different financial needs, such as personal savings, salaries, business income, and investment funds.

Sheilah Anena Manelo, an online clothing retailer in Kampala, says she operates three bank accounts: one for her loan-related business, one for her salary, and another strictly for savings. Flavia Lanyero, an employee at Uganda Breweries Limited, uses two accounts—for expenses and savings—and is planning to open a third for investments.

Benefits of Multiple Accounts

For many, this multi-account system brings structure and discipline to personal budgeting. Designating specific accounts for different uses helps reduce impulsive spending and encourages long-term saving. “I’m terrible at managing money. I’d spend on anything I saw,” admits Lanyero. Having dedicated accounts has helped her better track her spending and meet savings targets.

Multiple accounts also allow consumers to benefit from different features offered by various banks. Some accounts may have higher interest rates or lower fees, while others may come with loan offers or incentives that align with business or personal goals. “My savings account has made it easier for me to access business loans,” Anena notes.

Mitigating Risk Through Diversification

Spreading funds across several banks also reduces dependency on a single financial institution. Technical failures, ATM outages, or sudden bank closures can cause major disruptions if all one’s money is held in one place. Businessman Oscar Lubangakene recalls a weekend incident where he struggled to withdraw money due to ATM failures across multiple branches.

Access to Tailored Banking Products

Some banks offer specialised accounts aimed at specific life goals such as retirement, healthcare, education, or home ownership. By maintaining multiple accounts, customers can tailor their banking experience to better align with these financial milestones.

Challenges to Consider

Despite the advantages, managing multiple bank accounts comes with its own set of challenges. Keeping track of account activity, minimum balance requirements, and maintenance fees can be cumbersome. Anena, for instance, says she has experienced high service charges on all her accounts except her staff account, which is partially exempt from fees.

Infrequently used accounts may also be classified as dormant, potentially attracting penalties or restrictions. Moreover, having several accounts may create a misleading sense of financial stability, leading to overspending. “Discipline and a clear overview of your finances are essential,” Anena advises.

Expert Advice and Best Practices

To maximise the benefits and avoid potential pitfalls, financial experts recommend comparing banks for favorable account terms, automating transfers to encourage consistent savings, and regularly reviewing all accounts. Setting clear financial goals is also key to making the multi-account system work effectively.

While some, like Lubangakene, prefer to maintain a single account to build credit history and streamline access to loans, he emphasizes the importance of discipline: “I rarely touch the money I’ve marked for savings.”

Ultimately, the decision to maintain one or several bank accounts depends on individual financial habits and objectives. What matters most is developing a system—simple or complex—that promotes responsible money management and long-term financial growth.