What is your relationship with your savings account? Do you just know it by its number, or do you have a pet name for it and an Emoji attached?
According to online bank Ubank, people who actually give their savings account a name are better savers, hitting their money goals 40% faster than those who just leave the account as a number or as an “S2” account for second savings.
Many of us have separate savings accounts for separate goals, but it appears that is only the first step.
Setting up the account indicates a level of commitment to a savings plan, but the research shows that giving the account a name adds another dimension and has emerged as a marker of success.
For many people, saving money is a chore. Creating savings accounts for specific purposes can transform a chore into a challenge and a game, creating excitement as funds grow and the goals get closer.
Personalising the accounts, according to Ubank, takes it to the next level. Segmenting your money into goal driven accounts prevents financial “leakage” as you lose track of your spending and gives you more control over your funds and your life.
Ubank enables its customers to have up to ten different savings accounts for different purposes, and research of 8000 customers has found that 83% have renamed their accounts based on the purpose of the accounts. Top names include ‘Home’, ‘Holiday’, ‘Car’, ‘Christmas’ and ‘Investment.’
Some people go to the next level, according to the research, and also use Emojis to indicate the purpose of the account. Ubank customers use rings, palm trees and Emojis of presents to inspire them to save.
According to Ubank chief product and growth officer Andrew Morrison naming your bank account “makes it personal”.
“Customers are more likely to stay motivated and on track when they can see a specific and tangible goal they’ve set themselves,” he says.
“Goal setting is deeply rooted in human psychology. It adds excitement, connection, and meaning to the here and now. Every time customers open their mobile banking app they are reminded of their goals and progress towards them.”
Morrison advises customers to keep account names simple with realistic goals, and have one savings target for each area of your finances.
“Instead of having three holiday funds, create one for a goal around entertainment/leisure, another for bills/expenses and a third or fourth for travel,” he says.
“This will give you financial stability across key areas of life and help you to stay on track.”