How Many Bank Accounts Should You Have?
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?” However, for most people having one bank account is a common option and there is no thought in really expanding to other accounts.
Personally, it never crossed my mind when I was first focusing more on my personal finances. But as I grew my savings and investments, I did start thinking about it more and if additional accounts were the right move. Now the majority of people really do not need more than one institution that they do banking with. And the common choice to make is to have a checking account and savings account at one bank of your choosing.
But if you’re wondering how many bank accounts should you have, some pros and cons, and the options you have — then stick with me below!
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Should You Keep All Your Money in One Bank?
When it comes to bank accounts, you may consider the most convenient option to be keeping 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.
For example, a second bank account may offer you a better interest rate which would allow your money to beat inflation long term. And for this reason, deciding how many bank accounts you should have does require some thought process.
Here’s a quick breakdown of the pros of having one bank and multiple. We’ll explore these a bit more in the next sections.
Managing accounts in one bank:
Easy to manage and maintain from one institution instead of multiple
A bit more protected from identity theft and potential fraud
Having more than 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
How Many Bank Accounts Should You Have?
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