How Many Bank Accounts Should You Have? [The Simple Guide]
As you build your emergency fund and savings, a question you might ask yourself is, “How many bank accounts should I have?”
Should You Keep All Your Money in One Bank?
Keeping all your money in one bank may be simpler, but depending on your financial circumstances, it may not be the best.
- Easy to manage and maintain from one institution instead of multiple - A bit more protected from identity theft and potential fraud
Managing accounts in one bank:
- Diversifying your money for budgeting and spending needs - Better banking options pending your needs - Higher interest rates in some savings accounts - Testing out other banks services and perks
Having more than one bank:
A normal amount of bank accounts is 3 to 4 accounts, however it does depend on individual situations. Most people are happy with two bank accounts, and then open extra accounts if needed.
How Many Bank Accounts Should You Have?
One advantage of opening a new bank account is you’ll be able to take advantage of promotions or rewards that a bank may be offering to new customers.
What are some pros of having several bank accounts?
You could also open a new account in order to have access to a higher interest rate in a separate bank, therefore keeping up with or beating inflation and slowly increasing your savings.
The cons of having several bank accounts is that it can get pretty confusing. Having all your details in one place makes it faster to do transfers as well as track every transaction.
What are some cons of having several bank accounts?
You could also miss overdraft fees by accident or even fraud charges that are costing you. And If you choose a bank with different account fees, it ends up costing you more money!
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